In economics it is assumed that people are rational To be ra

In economics it is assumed that people are rational. To be rational an economic actor must make sure that

the benefit derived from a choice exceeds some alternative.

his/her economic resources are saved for future use.

her/his resources are not being used fully since that will exhust them.

the benefit derived from a choice exceeds the opportunity cost.

Solution

Answer . d)

Rationality in economics assumes that the benefit derived from the choice exceeds the opportunity cost i.e it is the beat choice and has greter benefits than the alternative second best choice.

Opportunity cost is the essential relationship between scarcity and choice.