The assumption that individuals act rationally implies that
A)people think only of themselves and disregard the wellbeing of others
B)people undertake all those activities that yield benefits to themselves
C)people only consider the costs of an activity to decide whether it is worthwhile
D)the greater the cost of a charitable deed to a benefactor, the more likely he or she is to perform that
Deed
E)people implicitly calculate the costs and benefits of an activity to decide if it is worthwhile

Question

The assumption that individuals act rationally implies that
A)people think only of themselves and disregard the well­being of others
B)people undertake all those activities that yield benefits to themselves
C)people only consider the costs of an activity to decide whether it is worthwhile
D)the greater the cost of a charitable deed to a benefactor, the more likely he or she is to perform that
Deed
E)people implicitly calculate the costs and benefits of an activity to decide if it is worthwhile

Quizplus · Accepted Answer

The assumption that individuals act rationally suggests that they implicitly calculate the costs and benefits of an activity to decide if it is worthwhile. This means that people consider both the potential benefits and costs of an action before deciding whether or not to undertake it.

The Assumption That Individuals Act Rationally Implies That