When Economists Say That People Act as Rational Decision Makers,they

question 25

Multiple Choice

When economists say that people act as rational decision makers,they mean that:

• A)people gather all relevant information before making their purchases.
• B)once a pattern of behavior has been established,people tend to become set in their ways.
• C)people respond in predictable ways to changes in costs and benefits.
• D)people rarely make errors when permitted to make transactions.
• E)once made,decisions are never reversed.

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Definitions:

Scrap Value

The anticipated market value of an asset at the end of its operational lifetime.

Sum-Of-The-Years-Digits

A depreciation method that results in a more accelerated write-off of the asset, calculated by adding together the digits of the asset's useful life years.

MACRS Tables

The Modified Accelerated Cost Recovery System tables used in the United States for tax purposes to determine the depreciation of assets over time.

Allowable Depreciation

The allowable tax deduction for the reduction in value of a tangible asset over its useful life, as determined by tax regulations.