In the theory of utilitarianism, economists assume that
A) consumers will maximize their income subject to a budget constraint.
B) while consumers are mostly rational, they occasionally indulge in impulse buying.
C) people will spend their incomes so as to maximize their happiness.
D) utility measures usefulness.

Question

Quizplus · Accepted Answer

In the theory of utilitarianism, the core assumption is that individuals act in a way to maximize their happiness or utility. This theory posits that people make decisions based on the expected utility outcome, aiming to achieve the greatest happiness. Choices A, B, and D, while related to economic behavior, do not directly align with the fundamental principle of utilitarianism, which is centered on the maximization of happiness or utility from consumption or actions.

In the Theory of Utilitarianism, Economists Assume That