Home Economy Economists Assume That Individuals (Answer)

Economists Assume That Individuals (Answer)

Economists Assume That Individuals…

Need an answer?

Let’s do a pop quiz?

Keep reading as we have gathered exactly the information that you need!

Let’s dig into our economics knowledge!

Are you ready?

Let’s get started!

Economists Assume That Individuals

Question:

Choose the best option about what economists assume motivates individual decisions:

  • Individuals are motivated by greed
  • They are driven by altruism 
  • They decide based on rational self-interest 
  • They act for benevolence sake 

Answer:

Economists assume that individuals are motivated by rational self-interest.

Rational Self-Interest

Rational self-interest is what drives people to make decisions in their day-to-day life.

Economists assume that you and I make decisions and choices in our lives that are best for our own personal objectives, provide us with satisfaction, and advance our own agenda.

This does not mean that we are greedy.

In fact, most people are highly altruistic and help others while at the same time pursuing their own self-interest.

In economics, self-interest means that by pursuing your own goals, objectives, and satisfaction, you make choices that are driven by your needs and wants (your self-interest).

This does not mean that you have acted in a selfish manner or are motivated by greed.

Takeaways 

Economists assume that individuals…?

Economists assume that a firm’s decisions are made in an attempt to…?

Let’s look at a summary of our findings.

  • Question: Economists assume that people are motivated by what exactly when they make decisions in their lives?
  • Answer: Economists assume that individuals are rational beings, act in their self-interest, and respond to incentives 
Economic cost
Economic scarcity 
Macroeconomics 
Normative economics 
Opportunity cost
Principles of economy 
Rational self-interest
Author

Editorial Staff
Hello Nation! I'm a lawyer by trade and an entrepreneur by spirit. I specialize in law, business, marketing, and technology (and love it!). I'm an expert SEO and content marketer where I deeply enjoy writing content in highly competitive fields. On this blog, I share my experiences, knowledge, and provide you with golden nuggets of useful information. Enjoy!

Most Popular

What Is A Special Purpose Entity (All You Need To Know)

What Is A Special Purpose Entity (Explained: All You Need To Know)

What Is Corporate Raiding (Explained: All You Need To Know)

What Is Corporate Raiding (Explained: All You Need To Know)

What Are Golden Shares (Explained: All You Need To Know)

What Are Golden Shares (Explained: All You Need To Know)

What Is A Targeted Repurchase (Explained: All You Need To Know)

What Is A Targeted Repurchase (Explained: All You Need To Know)

What Is A Friendly Takeover (Explained: All You Need To Know)

What Is A Friendly Takeover (Explained: All You Need To Know)

Editor's Picks

WIP Meaning (Explained: All You Need To Know)

Looking for the WIP Meaning? What does WIP mean in simple terms? What are the essential...

What Does Acquisition Mean (Explained: All You Need To Know)

What Does Acquisition Mean (Explained: All You Need To Know)

Night Depositories (What Are They And How They Work: Overview)

Night Depositories (What Are They And How They Work: Overview)

Promisor (Legal Definition In Contract Law And Examples)

Promisor (Legal Definition In Contract Law And Examples)

What Is A Corporate Job (Explained: All You Need To Know)

What Is A Corporate Job (Explained: All You Need To Know)