For mathematical convenience,assuming that people are fully rational and self-interested
A) clearly does not mean that people really are fully rational and self-interested all the time.
B) clearly means that people really are fully rational and self-interested all the time.
C) is a practice never followed by economists,but is often followed by psychologists.
D) is a practice always followed by behavioral economists.
E) is a practice that is banned in most states by professional ethics laws.

Question

Quizplus · Accepted Answer

Assuming that people are fully rational and self-interested is a mathematical convenience for economic models, but it is not reflective of real-life human behavior. In reality, people are often irrational and act against their own self-interest.

For Mathematical Convenience,assuming That People Are Fully Rational and Self-Interested