Question

question 4 of 14
what does the rational choice theory suggest about how individuals make decisions?
select an answer from the options below
a. they make decisions based on gut feelings and emotions.
b. they make decisions through rational calculations to maximize their self-interest.
c. they follow the actions and opinions of a group.
d. they make decisions based on mental shortcuts and cognitive biases.

Explanation:

Rational choice theory posits that individuals are utility-maximizers who use logical, rational calculations to make decisions that serve their own best interests. Option A describes intuitive/emotional decision-making, option C describes group-influenced decisions, and option D describes bounded rationality with heuristics. Only option B aligns with the core of rational choice theory.

Answer:

B. They make decisions through rational calculations to maximize their self-interest.