Question

When many people think of “economics”, they think of money. However, economics is not purely about money but how individuals and societies make difficult choices regarding all kinds of scarce resources. Do you believe that people typically make “rational” choices in their decision-making? In other words, do people typically make choices in their best interest? Why or why not? How do you define “best interest”? Is this different from societal interest? How?  

Answer 1

Basically, individuals make logical choices in the procurement of scare resources. Economics is basically a study of the rational habits of the consumer in which how individuals allocate their resources in order to satisfy there wants.
There is a proper procedure that an individual follows while taking reasonable choice such as:
- Resources for satisfying human wants are restricted.
- The individual has to prepare the list of there desires and complete satisfaction that desires based on the requirement.
- As we know resources are limited and preferable so we must prepare a list of desires and satisfying the utmost important wants from the list.
- It is a research study of the rational choice of the individual in order to a personal interest.
As logical private people always take sensible and right choices in order to gain maximum share.
Best interest suggests the optimal level of fulfillment that a person has actually been acquired from using the resources to meet their requirement or want.
Rational choice is various from societal choice since the logical decision is taken by the person for there personal interest whereas social choice is taken for the society as a whole. An individual can not determine society's resources and worths as they take decisions in which they are maximumly pleased.