Economists Assume That Individuals

question 81

Multiple Choice

Economists assume that individuals

• A)behave in unpredictable ways.
• B)will never take actions to help others.
• C)prefer to live in a society that values fairness above all else.
• D)are rational and respond to incentives.

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Definitions:

Fixed Assets

Tangible assets, such as buildings, machinery, and equipment, used in the operations of a business that are not intended for sale.

Insurance Policy

A contract between an insurer and policyholder specifying the terms for the payment of claims to the insured or their beneficiaries in the event of a covered loss.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate accounting period.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company's balance sheet.