Which of the Following Statements Is True

question 88

Multiple Choice

Which of the following statements is true?

• A) All rational economic agents attempt to maximize their income.
• B) A rational consumer makes his decisions depending on what the majority chooses.
• C) A budget constraint is an economic tool that quantifies the trade-off between the consumption of two goods.
• D) A trade-off refers to the exchange of goods between economic agents through the barter system or mutual exchange.

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Definitions:

Relative Permanence

The quality of a negotiable instrument that ensures its longevity.

Writing Requirement

The writing requirement refers to legal stipulations that certain types of agreements or contracts must be documented in written form to be legally valid.

Drawer

A drawer is a person or entity that issues or writes a check or draft, instructing a bank or similar institution to pay a specific amount of money to a designated party.

Drawee

The party on whom a cheque or draft is drawn, responsible for paying the specified amount on the instrument.