Rational Choice Theory: a a framework for understanding and often formally modelling social and economic behavior.

(Source: Scott, J. (2000). "Rational Choice Theory." Understanding Contemporary Society: Theories of the Present. London: Sage Publications.

In social work, this means, with a designated amount of money, choosing which programs are the most beneficial to the neediest members of the community, and which programs or activities need to be laid aside until more money arrives. This may also mean choosing between the less expensive between a number of programs that are of equal benefit.

Applying it to other fields rational choice may mean, for instance, getting $500.00, and choosing to spend it on penny stocks, which have the potential to increase over time, clothes, which tend to wear out or become out of fashion very quickly, or renting an apartment, which lasts a very limited time, usually a month. Some people, if they are money oriented, invest money in stocks, and they also invest money in small businesses.