_____ is based upon the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants.

A) Rational economics
B) Socialism
C) Capitalism
D) Behavioral economics
E) Consumerism

Rational Economics

The study of how individuals and groups make decisions to allocate resources in order to maximize their welfare.

Utility Maximization

An economic principle that suggests individuals seek to achieve the highest level of satisfaction or utility from their actions and decisions.

Needs and Wants

The basic requirements for survival, such as food and shelter, compared to desires or wishes that do not necessarily contribute to one’s survival.