Economists Usually Assume That Consumers

question 85

Multiple Choice

Economists usually assume that consumers

• A) are motivated to maximize their utility.
• B) spend all of their current income.
• C) are poor judges of what is best for them.
• D) are motivated to maximize their profit.
• E) usually save as much as possible of their income.

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Definitions:

Invoice Date

The date when an invoice is issued, marking the beginning of the grace period for payment.

Partial Payment

A payment made that is not the full amount due but is accepted as a partial settlement of the total debt.

Cash Discount

A reduction in the price of an item or service provided by the seller to the buyer for prompt payment.

Partial Payment

A payment made that is not the full amount due on a debt, bill, or other financial obligation.