When people act as if they are motivated by self-interest, and respond predictably to opportunities for gain, this is
A) inconsistent with the basic principles of economics
B) an example of macroeconomics, not microeconomics
C) rational self-interest
D) irrational because not all people want to increase their wealth

Question

Quizplus · Accepted Answer

Rational self-interest is a fundamental assumption in economics, suggesting that individuals make decisions aimed at maximizing their own benefit or utility. This concept is central to both microeconomics and macroeconomics, as it influences how people respond to various incentives and opportunities.

When People Act as If They Are Motivated by Self-Interest