According to economic theory, how do people make decisions?
A) They make decisions in the same manner as their parents did.
B) They make decisions by looking at what others have done in the same situation and then doing the opposite.
C) They make decisions by looking at what others have done in the same situation and then doing the same.
D) They make decisions based on their own self-interest.

Question

Quizplus · Accepted Answer

According to economic theory, individuals make decisions based on their own self-interest, seeking to maximize their utility or satisfaction from the choices they make. This is known as the rational choice theory, which assumes that individuals weigh the costs and benefits of different options before choosing the one that will give them the greatest benefit.

According to Economic Theory, How Do People Make Decisions