When Individuals Act in Their Own Self-Interest

question 164

Multiple Choice

When individuals act in their own self-interest:

• A)efficiency is always achieved.
• B)equity is always achieved.
• C)society may be worse off in some cases.
• D)all opportunities have been taken to make some people better off without making other people worse off.

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Definitions:

Asset Test

A means of determining an individual's or entity's ability to meet its financial obligations by comparing its liquid assets against its current liabilities.

Operating Segments

Elements of a corporation for which distinct financial data is obtainable, which the chief operating decision maker reviews routinely to determine resource allocation and to evaluate performance.

Reporting Tests

Procedures or checks utilized to ensure financial information is accurate, complete, and in compliance with regulations.

Quantitative Thresholds

Fixed numerical limits or criteria used to trigger certain actions or classify objects in financial and statistical contexts.