An Assumption of Economists' Standard Theory of Choice Is That

question 119

Multiple Choice

An assumption of economists' standard theory of choice is that:

• A) individuals maximize marginal utility.
• B) preferences are given and are not shaped by society.
• C) it is costly for a consumer to make optimal choices.
• D) individuals use rules of thumb to make decisions.

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Definitions:

Entrepreneurship

The process of designing, launching, and running a new business, often initially a small business.

Angel Investor

A wealthy individual willing to invest in a new venture in return for an equity stake.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing assets minus liabilities.

Venture Capitalists

Individuals who make large investments in new ventures in return for an equity stake in the business.