The assumption of rational self-interest means that economic decision makers:
A)have no concern for the welfare of others.
B)make reasonable decisions based on their expectations of results.
C)know with certainty which choice will have the best result.
D)consider the welfare of others to be more important than their own happiness.
E)do not make incorrect decisions or bad choices.

Question

Quizplus · Accepted Answer

The assumption of rational self-interest means that economic decision makers make reasonable decisions based on their expectations of results. It does not mean they have no concern for the welfare of others, know with certainty which choice will have the best result, consider the welfare of others to be more important than their own happiness, or that they do not make incorrect decisions or bad choices. Therefore, the best choice is B, as it accurately reflects the assumption of rational self-interest.

The Assumption of Rational Self-Interest Means That Economic Decision Makers