The Role of Rational Self-Interest in Economic Analysis


Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Engaging in voluntary exchanges that make both parties better off than they were before the exchange is called _____.

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. What theory is the basis for when producers and consumers interact under the principle of voluntary exchange where not only is each individual better off, but so is society as a whole?

2. _____ helps decision-makers make predictions to find successful answers to production and consumption questions.

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

Making decisions based on one's self-interest serves as the logical foundation for market economics. To successfully pass this quiz, you will need to understand the psychology that drives supply and demand.

Quiz & Worksheet Goals

To demonstrate your comprehension of this topic, you will be quizzed on:

  • Voluntary exchanges
  • Philosophical aspects of a capitalism
  • Tools utilized to make economic decisions

Skills Practiced

  • Information recall - access the knowledge you've gained regarding the nature of decision making in a free market system
  • Making connections - use understanding of economic theories to answer questions
  • Reading comprehension - ensure that you draw the most important information regarding rational self-interest from the lesson

Additional Learning

To gain further insight into this subject, please read the accompanying lesson titled The Role of Rational Self-Interest in Economic Analysis. The lesson covers:

  • Adam Smith's 'Wealth of Nations'
  • Economic equilibrium
  • Analytical tools for economic decision making