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

Question

Quizplus · Accepted Answer

Economists usually assume that consumers are rational and aim to maximize their satisfaction or utility from the goods and services they consume. This assumption is based on the idea that consumers make choices that lead to the greatest possible benefit or well-being given their limited resources and preferences. Therefore, choice E, "are motivated to maximize their utility," is the best choice.

Economists Usually Assume That Consumers