Economists assume that rational behaviour is useful in explaining the choices people make
A) because irrational people do not make economic choices.
B) even though people may not behave rationally all the time.
C) because individuals act rationally all the time in all circumstances.
D) even though people rarely, if ever, behave in a rational manner.

Question

Quizplus · Accepted Answer

Economists recognize that people may not always behave rationally, but assuming rational behavior can still provide useful insights in explaining the choices people make.

Economists Assume That Rational Behaviour Is Useful in Explaining the Choices