Asked by Grant Messenger on May 05, 2024
Verified
Rational choice by an individual implies:
A) the use of a mathematical model when solving a problem.
B) making decisions aimed at achieving some predetermined goal.
C) that only monetary costs and benefits are weighed.
D) that scarcity can be eliminated for that individual.
Rational Choice
Rational choice is a theory in economics that assumes individuals make decisions that provide them with the greatest benefit or satisfaction given the choices available.
Predetermined Goal
A specific objective or target set in advance that guides decision-making and strategy formulation.
- Absorb the principles of rational behavior assumption in economics and their significance for decision-making activities.
Verified Answer
KA
Kelsie AdamsMay 10, 2024
Final Answer :
B
Explanation :
Rational choice by an individual means that they make decisions aimed at achieving some predetermined goal. This may involve weighing both monetary and non-monetary costs and benefits, and is not limited to a mathematical model. Scarcity cannot be eliminated for any individual, so option D is not correct. Option C is not entirely accurate since non-monetary costs and benefits may also be considered. Therefore, the best choice is B.
Learning Objectives
- Absorb the principles of rational behavior assumption in economics and their significance for decision-making activities.