Economics studies the choices that people make. These choices are heavily influenced by scarcity and incentives. People use rational decision making to choose based on their common sense and personal preferences.
Economists use the assumption of rational behavior to observe why they make the choices they do. This allows them a view into common sense and general preferences. Also it would take into consideration of the data or the information that led the person in question to make this choice. To study the choices that people make, one must know the facts they knew and understand common sense. If added together; the facts and common sense will lead to a rational decision that the person has made or would make.
But there are times when people would choose irrationally but that can be avoided if given incentive (a reward or penalty). Self-control is necessary to choose wisely and in our self-interest at times.
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