Rational Behavior for an Economist Means That Individuals

question 318

Multiple Choice

Rational behavior for an economist means that individuals

• A)are motivated by self-interest.
• B)never change their minds.
• C)always make positive choices.
• D)are self-sacrificing.

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Definitions:

Net Sales

The total revenue from sales minus returns, allowances, and discounts.

Cost Of Goods Sold

The direct outlays for materials and labor involved in the production of a company's goods for sale.

Net Income

The profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.

Increase In Net Income

An upward movement in a company’s earnings after all expenses and taxes have been subtracted from total revenue.