When economists assume that people act rationally, it means they:
A)make decisions based on complete and accurate information.
B)make decisions that will not be regretted later on.
C)make decisions based on what they believe is best for themselves using available information.
D)make decisions based solely on what is best for society.

Question

When economists assume that people act rationally, it means they:
A)​make decisions based on complete and accurate information.
B)​make decisions that will not be regretted later on.
C)​make decisions based on what they believe is best for themselves using available information.
D)​make decisions based solely on what is best for society.

Quizplus · Accepted Answer

When economists assume that people act rationally, it means they make decisions based on what they believe is best for themselves using available information. This assumption is based on the idea that individuals have limited resources and try to maximize their benefits with those resources. It does not assume a perfect understanding of complete and accurate information or decision-making without regret. Additionally, it does not assume that individuals make decisions based solely on what is best for society.

When Economists Assume That People Act Rationally, It Means They