The assumption that consumer choices are utility-maximizing is:

A) a main axiom of behavioral economics.
B) an assumption that behavioral economics calls into question.
C) a logical conclusion of observed behavior.
D) a basic assumption of basic economic theory that carries over to behavioral economics.

Utility-Maximizing

Refers to the economic principle that individuals or firms aim to achieve the highest satisfaction or benefit from their resources and choices under certain constraints.

Behavioral Economics

The study of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical theory.

Basic Economic Theory

Refers to the foundational concepts and principles that explain how individuals, firms, and governments make decisions on allocating scarce resources to satisfy unlimited wants.