In the neo-classical period, what is the depicted view of humans in economics?

• A. Homo economicus, rational man
• B. Irrational and emotional
• C. A collective social actor
• D. Random behavior

Answer: (A)

In neo-classical economics, humans are depicted as Homo economicus—rational, self-interested agents who aim to maximize their utility given constraints like income and prices. They evaluate options by comparing marginal costs and benefits, make decisions that offer the greatest net satisfaction, and adjust behavior in response to price signals and resource limits. This rational, optimization-driven view underpins consumer choice, market exchanges, and the tendency toward efficient resource allocation through supply and demand. The other descriptions don’t fit this framework: irrational and emotional behavior belongs to behavioral critiques, a collective social actor shifts focus from individuals to groups, and random behavior conflicts with the orderly optimization assumed in neo-classical theory. Therefore, the rational, utility-maximizing individual is the best fit.