The Theory of Economic Behavior

The Theory of Economic Behavior explores how individuals and firms make decisions to allocate limited resources, such as time and money, to maximize their benefits. It examines how people weigh costs and benefits to choose the best possible options, considering factors like preferences, expectations, and available information. This theory helps explain markets, consumer choices, and production patterns, highlighting the rational decision-making processes that drive economic activity. Overall, it provides a framework for understanding how economic agents behave in pursuit of their goals within a constrained environment.