What does the assumption of rational self-interest mean?
A) that economic decision makers have no concern for the welfare of others
B) that economic decision makers consider the welfare of others to be more important than their own happiness
C) that economic decision makers know with certainty which choice will have the best result
D) that economic decision makers make reasonable decisions based on their expectations of results

Question

What does the assumption of rational self-interest mean?  
A) that economic decision makers have no concern for the welfare of others 
B) that economic decision makers consider the welfare of others to be more important than their own happiness 
C) that economic decision makers know with certainty which choice will have the best result 
D) that economic decision makers make reasonable decisions based on their expectations of results

Quizplus · Accepted Answer

The assumption of rational self-interest means economic decision makers make reasonable decisions based on their expectations of results. This means that they consider the costs and benefits of different choices and choose the option that will maximize their own happiness or satisfaction. However, this does not mean that they have no concern for the welfare of others, nor does it mean that they always know with certainty which choice will have the best result.

What Does the Assumption of Rational Self-Interest Mean