A model of choice in economics starts by assuming that:
A)people try to minimize their losses.
B)people try to maximize their consumption.
C)people try to minimize their costs.
D)people try to maximize their utility.

Question

Quizplus · Accepted Answer

The model of choice in economics assumes that individuals try to maximize their utility, which represents their satisfaction or well-being. This is the foundation of the rational behavior assumption in economic theory. A and C are also relevant considerations in decision-making, but they are not as fundamental as the pursuit of utility maximization. B is incorrect, as consumption is not necessarily the main goal of economic actors - they may also value leisure, savings, or other non-consumption activities.

A Model of Choice in Economics Starts by Assuming That