When economists refer to economic behavior, they mean that:
A)from time to time, everyone behaves irrationally.
B)changes in incentives influence behavior in unpredictable ways.
C)the pursuit of money is the most significant factor influencing decision making.
D)rational people try to anticipate the likely consequences of their actions.

Question

Quizplus · Accepted Answer

Economic behavior refers to how rational people make choices based on their expected costs and benefits. Rational people try to anticipate the likely consequences of their actions and make decisions accordingly, which is the foundation of economic analysis. While incentives do play a role in shaping behavior, the pursuit of money is not the sole factor influencing decision making. Additionally, although irrational behavior does occur, economists generally assume that people act rationally.

When Economists Refer to Economic Behavior, They Mean That