Q263
The economic analysis expects the consumer to behave in a manner which is
A.
Rational
AnswerB.
Irrational
C.
Emotional
D.
Indifferent
Answer: Option A
Solution
Answer: Option A
Solution:
The economic analysis expects the consumer to behave in a manner which is Rational. The assumption of rational behavior implies that people would rather be better off than worse off. Most conventional economic theories are based on the assumption that all individuals taking part in an action or activity are behaving rationally.