Economists assume that rational people
A)never use all available information as they act to achieve their goals.
B)undertake activities that benefit others and hurt themselves.
C)only weigh the benefits and costs of the most desirable alternative actions.
D)respond to economic incentives.

Question

Quizplus · Accepted Answer

Economists assume that rational people respond to economic incentives, meaning that they make decisions based on the costs and benefits of different options. This assumption is key to many economic models and theories.

Economists Assume That Rational People