Economists assume that people customarily behave rationally,meaning that people:
A)virtually always weigh the personal benefits and costs of every available action and choose an action on the basis of their individual wants
B)act in a rational way when buying and selling products, but not in other settings
C)act rationally when they buy products, but not when they sell them
D)act rationally when they sell products, but not when they buy them
E)are unable to act in an irrational way

Question

Quizplus · Accepted Answer

Economists assume that individuals make choices based on personal benefits and costs, and that this decision making process is rational. This assumption forms the basis of many economic models and theories. It does not mean that individuals always make the best decision, but rather that their decisions are based on logical reasoning and personal preferences.

Economists Assume That People Customarily Behave Rationally,meaning That People