When Studying Human Behavior, Economists Assume Rational Self-Interest

question 276

Multiple Choice

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.

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Definitions:

Small Organizations

Businesses or groups characterized by a limited number of employees, resources, or scale of operations.

Essential Ingredient

A critical or necessary component required for a process or outcome to be successful or complete.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Intelligence

The ability to learn, understand, and apply knowledge and skills, and to adapt effectively to new situations.