One Reason That Consumers and Businesses Might Not Act Rationally

question 86

Multiple Choice

One reason that consumers and businesses might not act rationally is

• A)it is difficult to obtain enough information about the elasticities of demand and supply.
• B)they may not realize their actions are inconsistent with their goals.
• C)consumer tastes change constantly.
• D)they do not always value fairness when they make choices.

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Definitions:

Depreciation Charges

The allocation of the cost of a tangible asset over its useful life to reflect its decrease in value over time.

GASB Statement No. 68

A standard issued by the Governmental Accounting Standards Board that establishes accounting and reporting requirements for pensions by state and local governments.