Which of the following assumptions do economists make about human behavior in decision-making?

Economists generally assume that people are rational agents who make decisions based on the information available to them. This concept is rooted in the idea that individuals weigh the costs and benefits of their choices to achieve the best possible outcomes for themselves. The assumption of rationality suggests that people will seek to maximize their utility, or satisfaction, when faced with decisions. Additionally, the notion of having complete information implies that individuals are fully aware of all relevant details that could affect their choices, allowing them to make informed decisions that align with their best interests.

This perspective does not necessarily reflect reality, as people may have limited information or may not always act rationally. However, this assumption serves as a foundational principle in economic theory, influencing models and predictions about human behavior in markets and other decision-making contexts. The rational actor model underpins much of neoclassical economics and is used to explain how individuals make choices in various scenarios, whether they be financial, social, or environmental in nature.