In an Economic Model of Consumer Behavior, Rational Self-Interest Would

question 2

Multiple Choice

In an economic model of consumer behavior, rational self-interest would likely be

• A)a key variable
• B)the hypothesis of the model
• C)a behavioral assumption
• D)a prediction of the model
• E)a method of testing the model

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Definitions:

Price Variance

The difference between the actual cost of a good or service and its planned or standard cost, indicating how effectively resources are being used.