The preferences of individuals are key to economic analysis because:
A)self- interest is not relevant for the understanding of how firms operate.
B)motivation is important in explaining economic choices.
C)self- interest is not relevant for understanding how consumers act in the marketplace.
D)economics is taking a subjective view of the world.

Question

Quizplus · Accepted Answer

Preferences, or individual motivations and desires, are essential in explaining economic choices made by both firms and consumers. Self-interest, or the pursuit of personal satisfaction, is a key factor in economic decision making and is one aspect of individual preferences. Therefore, option B is the best answer as it acknowledges the importance of motivation in economic analysis.

The Preferences of Individuals Are Key to Economic Analysis Because