The Ultimate Foundation of Economic Science

The Ultimate Foundation of Economic Science refers to the core principles that underpin how economists analyze human choice and resource allocation. It is grounded in the idea that individuals act purposefully to satisfy their needs and desires, making decisions based on available information and the cost-benefit trade-offs. These consistent motivational assumptions allow economists to build models and predict economic behavior. Essentially, it emphasizes that economics is rooted in the study of purposeful human action, emphasizing rational decision-making as the fundamental basis for understanding economic phenomena.