Most Economic Models Incorporate the Assumption of Rational Behavior on the Part

question 12

True/False

Most economic models incorporate the assumption of rational behavior on the part of economic actors.

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Definitions:

Stock Split

A corporate action that increases the number of shares outstanding by issuing more shares to current shareholders.

Market Price

The present price for which a service or asset is available for purchase or sale in a market.

Shares Outstanding

The total number of a company’s shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Low Dividend Policy

A corporate strategy involving the paying out of a small portion of a company’s earnings in the form of dividends, while retaining the majority to reinvest in the business.