Final answer:
The key assumptions of economics discussed in class are people being rational, optimal decisions at the margin, and people responding to economic incentives.
Step-by-step explanation:
The key assumptions of economics that were discussed in class are:
- People are rational: Traditional economic models assume that people take all available information and make consistent and informed decisions that are in their best interest.
- Optimal decisions are made at the margin: This means that people make decisions by comparing the additional costs and benefits of choosing one option over another.
- People respond to economic incentives: Economic incentives, such as financial rewards or penalties, influence people's behavior and decision-making.
These assumptions provide a framework for understanding how individuals and societies make economic choices.