ASSINGMENT.

MAN IS A COLD RATIONAL CALCULATOR

SUBMITTED BY .Muhammad Hasher Rizwan

SUBMITTED TO . Abdul Rehman Saeed

SUBJECT . MICRO ECONOMICS

SAP ID .27579
 SUMMARAY
AS INDIVIDUALS WE ARE SELF-INTRESTED WE AIM TO IMPROVE OUR PERSONAL

WELL-BEING BY CONSUMING GOODS AND SERVICES AND ACHIEVING GOALS .WE

MAKE DECISION BY COLLECTING INFORMATIONA AND CALULATING WHICH ACTIONS

WILL HELP US ACHIEVE OUR AIMS WITHOUT BEING TOO COSTLY .THE ECONOMIC

MAN.THIS TREM IS USEFUL WHEN ANALYZING THE ACTIONS OF PROFIT MANIMIZING

FIRMS WE CAN NOT WEIGH EVERY RELEVANT FACTOR IN A DECISION WE MAKE

QUICK DECISION BASED ON PAST EXPERIENCE ,HABITS AND RULES OF THUMB

THEROY FAILS WITH CO-FLICTING LONG- AND SHORT-TERM GOALS RATIONAL

DECISION ARE ONLY BASED ON HOW TO MANIMIZE THEIR PROFIT ECONOMIC AND

SOCIAL DECISION ARE BASED ON COSTS AND PROFITS IN PAST THERE ARE MANY

THEROY PROPOSED BY PHLISOPHERS SUCH AS

ARISTOTLE PRPOSED .INNATE SELF -INTEREST IS THE PRIMARAY ECONOMIC

MOTIVATOR

GARY BECKER . HE WORKED ON RATIONAL CHOICE IN THE FIELDS OF

DISCRIMINATION CRIME AND HUMAN CAPITLA

ADAM SMITH .ECONOMIC MAN .HUMANS ARE ESSENTIALLY RATIONAL SELF-

INTERESTED BEINGS .THEY MAXIMIZE THEIR PERSONAL WELL-BEING THEY CHOOSE

THE OPTION THAT’S OFFERS THE GREATEST UTILITY WITH THE LEAST EFFORT THIS

IDEA WAS FRIST EXPOUNDED BY ADAM SMITH IN HIS BOK THE WEALTH OF NATION

TODAY THE IDEA OF HOMO ECONOMICUSIS REFFERD AS NATIIONA CHOICS

THEROY .THIS SAY THAT PEOPLE MAKE ALL KINDS OF ECONOMIC DECISION AND

SOCIAL DECISION BASED ON COST AND BENFITS .