eating a meal or attending a ballgame. This is important because people generally use
their scarce time, energy and money to gain the most utility possible. Assuming people
behave rationally, they can maximize utility by the choices they make. If they choose
wealth accumulation, they can invest their income. If they like to help others, they can
give to charity.
Utility can also depend upon how a person spends their time. Someone who invests in
an education may get satisfaction from studying for exams. With the choice of studying
for exams, the student sometimes may need to balance their time to study for exams over
spending time with friends and family and other leisurely activities. If someone wants to
invest in a healthy lifestyle may enjoy living a balanced life of healthy meals and
Purposeful behavior can be economic or noneconomic, instrumental or noninstrumental, or
egoistic or altruistic, or public or social. This gives the assumption that goals and actions,
means and choices are either rational or irrational.
In economics, this can reflect human behavior as rational self-interest. When they look for
opportunities of self-interest, they decide what goods and services to buy. This behavior does
not assume that people and businesses are immune from faulty logic. It does mean that people
and companies do make decisions with some kind of interest in mind.
This rational self-interest does not mean that people and businesses are selfish. In order to
earn profit one must satisfy someone else’s wants and desires. This means that everyone
makes sacrifices for others. Therefore, self-interested behavior increases personal satisfaction.
In any event, people may need to examine their preferences for each and every activity
Cite This Essay
(2011, 05). Utility and Purposeful Behavior. StudyMode.com. Retrieved 05, 2011, from http://www.studymode.com/essays/Utility-And-Purposeful-Behavior-698766.html
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"Utility and Purposeful Behavior." StudyMode.com. 05, 2011. Accessed 05, 2011. http://www.studymode.com/essays/Utility-And-Purposeful-Behavior-698766.html.