When studying human behavior, economists assume rational self-interest. This means that
A) people make decisions based on some desired outcome.
B) people are quite selfish and are not concerned about others.
C) people always make the right decisions.
D) people have all the information they need to make a decision.

Question

Quizplus · Accepted Answer

Economists assume that individuals make decisions based on their own desired outcomes, which is the essence of rational self-interest. This does not necessarily mean that individuals are selfish or always make the right decisions, but rather that they consider the benefits and costs of an action in fulfilling their own objectives. However, it is acknowledged that individuals may not always have complete information to make the best decision.

When Studying Human Behavior, Economists Assume Rational Self-Interest