Economists make the general assumption that people
A) can be both rational and irrational,but the model must account for either.
B) are irrational,although modeling such irrationalities is nearly impossible.
C) are rational,but the assumption rarely fits reality.
D) are irrational,although general correlations exist in behavioral patterns.
E) are rational,but their behavior doesn't always follow this assumption.

Question

Quizplus · Accepted Answer

Economists generally assume that people are rational, but recognize that this may not always hold true in reality. Therefore, while the assumption is usually made, economists also acknowledge that people may behave irrationally in certain situations.

Economists Make the General Assumption That People