A Decision Maker Who Is Irrational

question 85

Multiple Choice

A decision maker who is irrational:

• A)chooses an option that makes him or her worse off,rather than choosing another available option.
• B)chooses the option that makes him or her better off,rather than choosing another available option.
• C)allocates income to maximize his or her satisfaction from consuming goods and services.
• D)seeks to maximize business profit.

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Definitions:

Trade Price

The price at which goods or services are traded between parties, often wholesale prices.

Pairs of Shoes

A unit of measure often used in economics or retail to discuss the quantity of shoes, indicative of inventory levels or sales volumes.

Domestic Price

The price of goods or services within a country's borders, as opposed to international or export prices.

Trade Price

The price at which goods are sold between companies, typically lower than retail prices due to the absence of retailer markup.