What is implied by the assumption that individual people act rationally?
A) People think only of themselves and disregard the well-being of others.
B) People undertake all those activities that yield benefits to themselves.
C) The greater the cost of a charitable deed to a benefactor, the more likely a person is to perform that deed.
D) People implicitly calculate the costs and benefits of an activity to decide if it is worthwhile.

Question

What is implied by the assumption that individual people act rationally?  
A) People think only of themselves and disregard the well-being of others. 
B) People undertake all those activities that yield benefits to themselves. 
C) The greater the cost of a charitable deed to a benefactor, the more likely a person is to perform that deed. 
D) People implicitly calculate the costs and benefits of an activity to decide if it is worthwhile.

Quizplus · Accepted Answer

The assumption that individual people act rationally implies that people implicitly calculate the costs and benefits of an activity to decide if it is worthwhile. This means that people make decisions based on whether they feel it will yield benefits to themselves. It does not necessarily mean that people think only of themselves and disregard the well-being of others, nor does it suggest that the greater the cost of a charitable deed to a benefactor, the more likely a person is to perform that deed.

What Is Implied by the Assumption That Individual People Act