Multiple choice

Economic analysis expects the consumer to behave in a manner which is

  1. rational

  2. irrational

  3. emotional

  4. indifferent

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Economic analysis assumes consumers are rational - they aim to maximize satisfaction given their budget constraints. Irrational behavior (B), emotional decisions (C), and indifference (D) are not foundational assumptions in consumer theory. Rational behavior leads to predictable demand patterns.

Keep practicing — related questions