Question

In traditional economic models, which of the following does NOT describe homo economicus?

1) Rational decision-making
2) Self-interest
3) Limited information
4) Altruism

Answer 1

Altruism does not describe homo economicus in traditional economic models, as homo economicus is assumed to act with rational self-interest rather than concern for others.

Step-by-step explanation:

The concept being discussed is homo economicus, a traditional figure in economic models representing an idealized human who acts rationally and with self-interest. In this context, 1) Rational decision-making, 2) Self-interest, and 3) Limited information are characteristics of homo economicus. These descriptors suggest that individuals use all available information to make consistent, informed decisions to maximize their own welfare. However, 4) Altruism typically does not describe homo economicus because, by definition, altruism involves acting with concern for the welfare of others even at a cost to oneself, which does not align with the self-interested decision-making homo economicus is assumed to engage in.