A Level Economics AQA Practice Exam

What is the primary characteristic of the Economic Man as assumed in mainstream economics?

1. A person who is both self-interested and rational

2. A person who prioritizes social well-being over personal gain

3. A person who is impulsive and lacks decision-making skills

4. A person who relies solely on emotional responses for actions

The correct answer is: A person who is both self-interested and rational

The primary characteristic of the Economic Man, as assumed in mainstream economics, is that of being both self-interested and rational. This concept is foundational in economic theory and suggests that individuals make decisions aimed at maximizing their own utility or satisfaction. The assumption of rationality means that individuals are expected to process information logically, weigh the costs and benefits of their actions, and choose the option that provides the greatest personal benefit. This perspective underlies many economic models and theories that analyze how people behave in the marketplace and make choices regarding consumption, production, and investment. In contrast, the other characteristics described in the options do not align with the standard view of the Economic Man. Those who prioritize social well-being over personal gain would not fit the self-interest criterion. Impulsiveness and a lack of decision-making skills contradict the rationality assumption, while relying solely on emotional responses overlooks the logical and calculated nature that the Economic Man embodies. Thus, the notion of the Economic Man is fundamentally rooted in the concepts of self-interest and rational behavior.