Which of the following is a TRUE statement about the economic assumption of rationality?
A)Individuals who are rational necessarily ignore the interests of others.
B)Individuals generally act as though they are rational.
C)Individual behavior may be irrational but group behavior is always rational.
D)People make decisions as if they are omniscient.

Question

Quizplus · Accepted Answer

The economic assumption of rationality states that individuals generally act as though they are rational, meaning that they make decisions based on a consistent set of preferences and they weigh the costs and benefits of each action before making a choice. This does not necessarily mean that individuals always make the best decision or ignore the interests of others, but rather that they try to make the most logical decision given the information and resources available to them.

Which of the Following Is a TRUE Statement About the Economic