Among a Set of Alternatives with the Same Total Costs,an

question 37

Multiple Choice

Among a set of alternatives with the same total costs,an individual is said to optimize if she chooses an alternative that has the ________.

• A) highest total benefit
• B) highest risk
• C) lowest opportunity costs
• D) highest net costs

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Definitions:

Equivalent Interest Rate

A rate that converts interest rates of various compounding periods into an annual rate for comparison purposes.

Nearest 0.01%

Rounding a percentage to the closest one-hundredth of a percent.

Nearest 0.01%

Rounding a number or percentage to the closest hundredth of a percent for precision.

Emotions

Complex psychological states involving physiological arousal, feelings, cognitive processes, and behavioral reactions.