When neoclassical economists assume that individuals are rational, they mean that people
A) rarely show emotion.
B) are generally unselfish and self-sacrificing.
C) make purposeful choices based on their own self-interest.
D) make impulsive decisions based on what feels good at the time.

Question

Quizplus · Accepted Answer

Neoclassical economists assume that individuals are rational, meaning they make purposeful choices based on their own self-interest, weighing the costs and benefits of different options. This assumption is at the core of neoclassical economic theory.

When Neoclassical Economists Assume That Individuals Are Rational, They Mean