The main behavioral assumption that economists use in analyzing the choices that people make under conditions of uncertainty is the

Question

Quizplus · Accepted Answer

The expected utility hypothesis assumes that individuals make choices based on their expected levels of utility (satisfaction) rather than simply expected monetary values. This hypothesis takes into account not only the probability of different outcomes but also the individual's preferences and attitudes towards risk. Therefore, it is the best choice for analyzing choices under conditions of uncertainty.

The Main Behavioral Assumption That Economists Use in Analyzing the Choices