A Traditional Economist Probably Would Not Want to Give Up

question 77

Multiple Choice

A traditional economist probably would not want to give up the assumption of consumer sovereignty because it:

• A) would violate Hume's dictum.
• B) is an empirically verifiable assumption.
• C) opens up a Pandora's box of problems and complexity.
• D) would violate the Schroeder principle.

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Definitions:

RRSP

Registered Retirement Savings Plan, a retirement savings and investing vehicle for employees and the self-employed in Canada that offers tax benefits.

Ordinary Annuity

A series of equal payments made at regular intervals, with the interest compounding at the end of each period; commonly found in retirement accounts and loan repayments.

Ordinary Annuity

A financial product resulting in payments of a fixed amount received or paid at the end of period intervals.

Compounded Monthly

The process of adding interest to the principal sum of a loan or deposit, or in other words, interest on interest, with this process happening every month.