Question

The theory of rational behavior a. is an assumption that economists make to have a useful model for how decisions are made. b. implies that people will always take the time to make correct decisions. c. assumes that people will behave in the best interest of society as a whole. d. assumes that people will always ignore others’ best interest.

Answer 1

The answer is B.

Step-by-step explanation:

The theory of rational behavior assumes that the decision maker or household has perfect information about the market. it also assumes they have the time and resources to evaluate each choice against the others.

This theory assumes that decision maker or households will make choices that will maximize benefits for themselves and minimize any cost i.e people will always take time to make correct decisions.