One baseline assumption that economists make about consumer behavior is that:
A) people are rational utility maximizers.
B) people will always choose short-term benefits to longer-term payoffs.
C) people will always choose what makes them happiest.
D) people are unpredictable.

Question

Quizplus · Accepted Answer

The assumption that people are rational utility maximizers is a fundamental assumption of economic theory. It means that people make choices based on their preferences and the constraints they face in order to maximize their personal satisfaction (utility) given their limited resources.

One Baseline Assumption That Economists Make About Consumer Behavior Is