Economists assume that individuals:

• A. always act in the interest of society as a whole
• B. prefer immediate gratification over any long-term benefits
• C. make decisions by weighing costs and benefits to maximize their utility
• D. make choices randomly without considering consequences

Answer: (C)

Verified step by step guidance

1. Understand the basic assumption in microeconomics about individual decision-making: economists generally assume that individuals are rational and aim to maximize their utility.
2. Recognize that utility refers to the satisfaction or benefit an individual derives from consuming goods or services or making choices.
3. Note that individuals weigh the costs and benefits of different options before making a decision, rather than acting randomly or solely based on immediate gratification.
4. Eliminate options that contradict this assumption, such as always acting for society's interest (which is more of a social planner's perspective) or making choices randomly.
5. Conclude that the correct assumption is that individuals make decisions by weighing costs and benefits to maximize their utility.