When economists assume that people are rational and respond to incentives, they mean
A) people act with kindness.
B) people are altruistic.
C) people act in their own self-interest.
D) people are selfish.

Question

Quizplus · Accepted Answer

When economists assume that people are rational and respond to incentives, they mean that individuals act in their own self-interest. This does not necessarily mean that people are selfish, but rather that they make choices that they believe will benefit themselves. This assumption forms the basis of many economic models and theories.

When Economists Assume That People Are Rational and Respond to Incentives