Economic models start with the assumption of

Name: Economic models start with the assumption of
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Question

Quizplus · Accepted Answer

Economic models assume that individuals and firms make rational decisions based on their self-interest, which is the foundation of microeconomic theory. Therefore, D is the correct choice. While the other options may play a role in economic models, they are not the foundational assumption upon which the models are built.

Economic Models Start with the Assumption of