The Rationality Assumption States That

question 292

Multiple Choice

The rationality assumption states that

• A) all actions taken by consumers are based on what is good for society.
• B) people make decisions regardless of how the outcome will affect them.
• C) people make decisions to buy only those goods that they need rather than goods that they want.
• D) people do not intentionally make decisions that would leave them worse off.

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Definitions:

Contracts Limited

Presumed to be a specific entity, but in general terms, it could relate to agreements that have certain limitations or restrictions imposed on them.

Weakened Intellect

A condition or state where an individual's cognitive abilities are significantly below average, affecting their decision-making capabilities.

Contract Law

The branch of legal studies that deals with the creation, interpretation, and enforcement of agreements between parties.

Infant

A very young child or baby, often legally defined as a person under a certain age, varying by jurisdiction.