Economists use their theories to predict how people will make certain types of choices when producing or consuming commodities.owners of a manufacturing plant ,for example,are constantly faced with choices .do they continue to manufacture only men's jokey shorts,or do they expand their product line to include underwear for women ? Do they move some or all of their manufacturing facilities to Mexico,or do they keep them in north Carolina ? Should they give their workers more benefits? Should they spend more of their profits on advertising?should they invest more capital on machinery or on additional labor?western economists assume that all of these questions will be answered in a rational way so as to maximize the company's profits.similarly,western economists assume that individuals as well as corporations are motivated by the desire to maximize their material well-being.