When studying human behavior, economists assume rational self-interest. This means that:
A) People make decisions based on some desired outcome
B) People are quite selfish, and are not concerned about others
C) People always make the right decisions
D) People have all the information they need to make a decision

Question

Quizplus · Accepted Answer

Economists assume that individuals make decisions based on what they believe will provide them with the most personal benefit or utility. This does not necessarily mean that people are selfish or that they always make the right decisions, but rather that they are acting based on their own perceived self-interest. Additionally, it is not assumed that individuals have all of the necessary information to make a decision, but rather that they make the best decision given the information they have available to them.

When Studying Human Behavior, Economists Assume Rational Self-Interest