Final answer:
The statement is true, as rational choice decision-making indeed involves choosing the option with the highest subjective expected utility. This is done by considering the marginal utility and budget constraints to determine the choice that maximizes satisfaction or happiness.
Step-by-step explanation:
The statement that the ultimate principle of rational choice decision-making is to choose the alternative with the highest subjective expected utility is true. This approach to decision-making is fundamental in economics and supported by the utility maximization theory. When making a decision, individuals evaluate the marginal utility, or additional satisfaction, gained from consuming additional units of goods or services within the constraints of their budget. They compare this to the marginal utility lost by forgoing other goods. By comparing the marginal utility gains and losses, individuals can find the choice with the highest total utility which maximizes their happiness or satisfaction, aiming for the greatest number of interests being satisfied for the greatest number of people.
For example, considering different choices along a budget constraint, an individual like José may not need to use specific numbers but should be able to identify which options provide him with the highest satisfaction. Additionally, at the optimal choice point, the ratio of marginal utility to the price of good 1 should equal the ratio of the marginal utility to the price of good 2, ensuring that the consumer is getting the most utility possible for each unit of currency spent. This principle ensures that choices are made in a way that maximum utility or happiness is achieved within the given constraints.