The Economic Approach to Human Behavior

The economic approach to human behavior suggests that people make decisions based on rational thought, aiming to maximize their benefits or satisfaction while minimizing costs. It assumes individuals weigh options carefully and choose the one they believe will serve their best interests. This perspective is used in economics and social sciences to analyze how people act in markets, relationships, and daily life, emphasizing that many choices are driven by self-interest, incentives, and resource constraints. It provides a structured way to understand why individuals behave the way they do, often highlighting the role of trade-offs and decision-making strategies.