Question

Rationality in the household decision-making process means that: a. households want to earn as much income as possible. b. households act in their own best interests. c. everyone in the household agrees on all decisions. d. all households make the same decisions. e. all households have the same information on product quality and prices.

Answer 1

households act in their own best interests.

Step-by-step explanation:

Economic Decision-Makers includes the Households, Firms, Governments, and the Rest of the World. Economic decision-making is the means or process of selecting which needs and wants that should be satisfied. The factors that determines what is produced are Resources available and consumer preferences and the factors that determines what is purchased are consumer preference and price.

The Households demand for goods and services will lead to what the industries produces. Households are seen as rational because they try to act in their upmost best interests and not what will make them sad.Utility maximization is dependent on household's subjective goals.