To apply the classical viewpoint in microeconomics, you must assume that people are rational and

• A. always act in the interest of society as a whole
• B. prefer immediate gratification over long-term benefits
• C. ignore the costs and benefits of their choices
• D. make decisions to maximize their utility given available information

Answer: (D)

Verified step by step guidance

1. Understand the classical viewpoint in microeconomics, which assumes that individuals are rational decision-makers.
2. Recognize that rationality means individuals make choices to maximize their utility, which is their satisfaction or benefit, based on the information they have.
3. Note that this viewpoint does not assume people ignore costs and benefits; rather, they consider these to make optimal decisions.
4. Also, it does not imply that people always act in the interest of society as a whole, but focus on their own utility maximization.
5. Therefore, the key assumption is that individuals make decisions to maximize their utility given the available information.