When economists say that people act as rational decision makers,they mean that:
A)people gather all relevant information before making their purchases.
B)once a pattern of behavior has been established,people tend to become set in their ways.
C)people respond in predictable ways to changes in costs and benefits.
D)people rarely make errors when permitted to make transactions.
E)once made,decisions are never reversed.

Question

Quizplus · Accepted Answer

When economists say that people act as rational decision makers, they mean that people respond in predictable ways to changes in costs and benefits. This is based on the assumption that individuals weigh the costs and benefits of different choices and make a decision based on maximizing their own utility or satisfaction. It does not necessarily imply that individuals gather all relevant information or never make errors, but rather that they act in a predictable manner based on their assessment of costs and benefits.

When Economists Say That People Act as Rational Decision Makers,they