A Defense for the Assumption That Consumers Maximize Is That

question 28

Multiple Choice

A defense for the assumption that consumers maximize is that

• A) consumers never make mistakes.
• B) mistakes by the consumer are not likely to last for a long time.
• C) it allows for many possible outcomes.
• D) mistaken consumers may receive counseling from the government.
• E) mistakes by consumers only last for two periods.

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Definitions:

Sigma Notation

A symbol used in mathematics to represent the sum of a sequence of terms defined by an expression.

Median

A statistical measure representing the middle value in a sorted list of numbers, where half the numbers are above and half are below.

Negative Correlation

When the value of one variable decreases as the value of the other variable increases.

Scatterplot

A type of data visualization that uses dots to represent values obtained for two different variables, one plotted along the x-axis and the other plotted along the y-axis.