Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries.
-The term self-interest, as viewed by economists, means that:
A)consumers never pay more for a good simply because it carries a certain designer label.
B)only economists are capable of making choices according to rational self-interest.
C)people never act in their self-interest until they have perfect information.
D)consumers always seek the least expensive option when making a purchase, regardless of individual preferences.
E)people make choices that, given the information available, gives them the greatest amount of satisfaction.

Question

Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​. 
-The term self-interest, as viewed by economists, means that:
A)consumers never pay more for a good simply because it carries a certain designer label. 
B)only economists are capable of making choices according to rational self-interest. 
C)people never act in their self-interest until they have perfect information. 
D)consumers always seek the least expensive option when making a purchase, regardless of individual preferences. 
E)people make choices that, given the information available, gives them the greatest amount of satisfaction.

Quizplus · Accepted Answer

The term self-interest, as viewed by economists, means that people make choices that, given the information available, gives them the greatest amount of satisfaction. This is in line with the concept of utility maximization, where individuals aim to maximize their overall happiness or satisfaction from the goods and services they consume. Therefore, option E is the best choice. The other options are either unrelated or present incorrect statements.

Figure 51 the Figure Shows a Linear Production Possibility Curve Representing