Alex sees that his neighbors' lawns all need mowing. He offers to provide the service in exchange for a wage of $20 per hour. Some neighbors accept Alex's offer and others refuse. Economists would describe Alex's behavior as
A) rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.
B) greedy because he is asking for a high wage that some of his neighbors can't afford to pay.
C) selfish because he is asking for a wage that is higher than others might charge.
D) irrational because some neighbors refused his offer.

Question

Quizplus · Accepted Answer

Alex is engaging in rational self-interest behavior by identifying a demand for lawn mowing services and offering his labor in exchange for a wage. It is natural for some neighbors to accept or refuse the offer based on their own needs and preferences, which does not make Alex's behavior irrational or selfish. The fact that Alex is asking for a wage that some neighbors can't afford does not necessarily mean he is being greedy, as setting a higher wage may reflect his perceived value of his labor and the opportunity cost of doing other activities.

Alex Sees That His Neighbors' Lawns All Need Mowing