What does it mean when economists say that people act as rational decision makers?
A) that people gather all relevant information before making any purchases
B) that once a pattern of behaviour has been established, people tend to become set in their ways
C) that people respond in predictable ways to changes in costs and benefits
D) that people rarely make errors when they are permitted to make transactions

Question

What does it mean when economists say that people act as rational decision makers?  
A) that people gather all relevant information before making any purchases 
B) that once a pattern of behaviour has been established, people tend to become set in their ways 
C) that people respond in predictable ways to changes in costs and benefits 
D) that people rarely make errors when they are permitted to make transactions

Quizplus · Accepted Answer

When economists say that people act as rational decision makers, they mean that people respond in predictable ways to changes in costs and benefits. This does not necessarily mean that people gather all relevant information before making a decision, or that they never make errors.

What Does It Mean When Economists Say That People Act