Economic analysis assumes "purposeful behavior," which means that people will pursue decisions or actions
A) that will increase their well-being.
B) always based on full or complete information.
C) with minimal consideration for their emotions.
D) without making any logical mistakes.

Question

Quizplus · Accepted Answer

Economic analysis assumes purposeful behavior, which means that individuals or firms pursue decisions or actions that will maximize their well-being or utility. They seek to achieve their objectives using the resources they have available. This assumption allows economists to create models to explain, analyze, and predict economic behavior.

Therefore, option A is the correct option, while the other options are incorrect. People do not always have full or complete information, and they can also make logical mistakes. Besides, people's emotions can also play a role in their decisions, although economic analysis assumes that individuals will consider all available information and make rational choices based on their own interests.

Economic Analysis Assumes "Purposeful Behavior," Which Means That People Will