When Economists Say That People Act as Rational Decision Makers

Multiple Choice

When economists say that people act as rational decision makers, they mean that:

A) people act on the basis of their instincts.
B) once a pattern of behavior has been established, people tend to become set in their ways.
C) people respond in predictable ways to changes in costs and benefits.
D) people rarely make errors when permitted to make transactions.
E) once made, decisions are never reversed.