A key assumption of most economic analysis is that people are altruistic, meaning that they act in their own self-interest.

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A key assumption of most economic analysis is that people are rational, meaning that they make decisions based on their self-interest. However, this does not necessarily mean they are completely altruistic or selfish. People can also factor in concerns about fairness, cooperation, and social norms, among other things, when making economic decisions.

A Key Assumption of Most Economic Analysis Is That People