Economists assume that most individuals act as if they are motivated by self-interest and respond in predictable ways to changing circumstances.

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This is known as the assumption of rational behavior and it is a fundamental concept in economics. It does not mean that all individuals always act in their own self-interest, but rather that they make decisions based on what they perceive to be in their own best interest. Additionally, economists believe that people respond to incentives and changes in circumstances in predictable ways based on their individual preferences and constraints.

Economists Assume That Most Individuals Act as If They Are