Note: I will separate each posts into an easy part and a hard part, indicated by a line.
The easy definition: When economists assume that people act for their best self-interest, or in layman's terms, choose a particular action if they think it's the best for them, or make them feel satisfied.
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The nerd definition: Again, being the studies that includes humans in its equations, it's only an assumption. Humans aren't exactly the smartest creatures (we learn more through mistakes than though victoly), and irrational actions are well, plenty. Thankfully, people who do this frequently are usually erased from the gene pool.
Rational thoughts is one of the bog three principles to economics, the other two being Scarcity and Marginalism.
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