Most economic models
A)incorporate the assumption of rational behavior on the part of economic actors.
B)incorporate the notion that people are usually reluctant to change their minds.
C)are meant to precisely duplicate reality.
D)assume that people often make sub-optimal choices.

Question

Quizplus · Accepted Answer

Most economic models incorporate the assumption of rational behavior, meaning they assume individuals and firms aim to maximize their utility or profits based on the information available to them. This simplifies the analysis and helps in understanding the fundamental principles governing economic decisions.

Most Economic Models