A key assumption of most economic analysis is that people act rationally and in their own self-interest.

Question

Quizplus · Accepted Answer

This assumption is fundamental to many economic models and theories, where it is assumed that individuals make rational decisions based on their preferences and available information, in order to maximize their own well-being or utility. However, there are also critiques of this assumption and alternative approaches that consider other factors influencing human behavior and decision-making.

A Key Assumption of Most Economic Analysis Is That People