Most of economic analysis assumes that people's actions are:
A)motivated by submerged emotional needs.
B)driven by magnetic forces generated by planetary movements.
C)motivated primarily by concern for the well-being of others.
D)motivated by self-interest.
E)motivated purely by money.

Question

Quizplus · Accepted Answer

The most widely accepted assumption in economics is that people are rational actors who are motivated by self-interest. This means that people are assumed to make choices that maximize their own well-being or utility, whether that means maximizing their income, their happiness, or some other measure of well-being. Of course, people may also be motivated by many other factors, including emotions, social norms, and concern for others, but economists generally assume that these other factors will be outweighed by self-interest in most circumstances.

Most of Economic Analysis Assumes That People's Actions Are