Basic Consumer Theory

question 34

Multiple Choice

Basic consumer theory:

• A) cannot possibly account for the effects of fairness.
• B) can be modified to account for the effects of fairness.
• C) fundamentally ignores fairness as a determinant of consumer behavior.
• D) is a salient conclusion in the model.

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Definitions:

Issued

Refers to the number of shares that a corporation has sold to investors or otherwise put into circulation.

Straight-Line Method

A method of depreciation that allocates an equal amount of depreciation each year over the useful life of an asset.

Bond Discount

The difference between the face value of a bond and its selling price when the bond is sold for less than its face value.

Premium

An amount paid in addition to a standard price, rate, or value, often indicating a higher level of quality or service.