Rational choice by an individual implies:
A)the use of a mathematical model when solving a problem.
B)making decisions aimed at achieving some predetermined goal.
C)that only monetary costs and benefits are weighed.
D)that the individual will never regret any action taken.
E)that scarcity can be eliminated for that individual.

Question

Quizplus · Accepted Answer

Rational choice theory assumes that individuals make decisions based on rational calculations aimed at achieving some predetermined goal. This goal could be maximizing pleasure/happiness or achieving a certain outcome. The theory recognizes that individuals face constraints, including limited resources and information, and therefore weigh costs and benefits of different actions. Rational choice theory does not necessarily require a mathematical model, nor does it assume that individuals only consider monetary costs and benefits. It also does not guarantee that individuals will not regret their choices. However, the theory does imply that individuals will make choices that they believe will benefit them the most based on their available options and constraints.

Rational Choice by an Individual Implies