In building economic models,economists assume people behave

Question

Quizplus · Accepted Answer

Economists generally assume people behave rationally when making decisions, meaning they weigh the costs and benefits of different options and choose the one that maximizes their utility or satisfaction. While there may be exceptions or deviations from rational behavior, the assumption of rationality provides a useful starting point for understanding individual and collective choices in the economy.

In Building Economic Models,economists Assume People Behave