Current economic theory has no explanation for why people volunteer at homeless shelters and contribute to disaster relief when doing so reduces their ability to consume goods and services.

Question

Quizplus · Accepted Answer

Current economic theory explains altruistic behaviors, such as volunteering at homeless shelters and contributing to disaster relief, through concepts like utility maximization, where individuals derive satisfaction not just from consuming goods and services, but also from the act of giving or helping others, thus increasing their overall utility.

Current Economic Theory Has No Explanation for Why People Volunteer