Which of the Following Is Most Consistent with Economizing Behavior

question 58

Multiple Choice

Which of the following is most consistent with economizing behavior?

• A) If you get the same satisfaction from a hamburger and a fish sandwich, you should purchase the one that costs the most.
• B) Even if you know how to paint, hiring someone to do the job is consistent with economizing behavior, if your opportunity cost is high enough.
• C) If the government provides a good free to citizens, the opportunity cost of the good is zero.
• D) If you get the same satisfaction from going to the opera and going to an art museum, it makes no difference which you choose.

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Definitions:

Dividend Payout Ratio

The fraction of earnings a company pays out to its shareholders as dividends, represented as a percentage of its net income.

Financial Statement

Formal records of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and cash flow statement.

External Financing

External financing is the process of obtaining funds from outside sources, such as banks, investors, or financial markets, to support a company's operations or expansion.

Sales Capacity

Refers to the maximum level of sales that can be achieved within a given period under normal operating conditions, considering the company's resources and market demand.