Rationality in the household decision-making process means that _____

Question

Quizplus · Accepted Answer

Rationality in the household decision-making process means that households act to maximize their level of satisfaction based on their preferences and budget constraints. It does not mean that all households make the same decisions or that everyone in the household agrees on all decisions. It also does not necessarily mean that households want to earn as much income as possible or that they have the same information on product quality and prices.

Rationality in the Household Decision-Making Process Means That _____