If people act as if they systematically pursue their own self-interest, then they will most likely
A) respond irrationally to any incentive.
B) respond to a given incentive in a random manner.
C) respond predictably to a given incentive.
D) not respond to any incentive.

Question

Quizplus · Accepted Answer

If people act as if they systematically pursue their own self-interest, then they will respond predictably to a given incentive because they will choose the option that benefits them the most. This assumption is the basis for many economic theories and models.

If People Act as If They Systematically Pursue Their Own