Economists usually assume that consumers
A)are poor judges of what is best for them.
B)are motivated to maximize their utility.
C)spend all of their current income.
D)usually save as much as possible of their income.
E)are motivated to maximize their profit.

Question

Quizplus · Accepted Answer

Economists assume that consumers are rational and motivated to maximize their utility, which means that they will make choices that bring them the most satisfaction or benefit given their budget constraints. This assumption forms the basis for many economic models and helps to explain consumer behavior in a range of contexts.

Economists Usually Assume That Consumers