The Purpose of Behavioral Economics Is to Determine Why

question 21

Multiple Choice

The purpose of behavioral economics is to determine why:

• A)people maximize utility.
• B)firms maximize profit and minimize costs.
• C)people make decisions that appear to be irrational.
• D)markets usually behave in an efficient manner.

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Definitions:

Quick Ratio

A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventories.

Goods Sold

Goods sold refers to the products that a company has provided to customers in exchange for payment; it is often used in the context of calculating revenues and inventory turnover.

Current Ratio

This is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.