If Dawson Prefers Pizza to Hamburgers and Hamburgers to Hot

question 126

Multiple Choice

If Dawson prefers pizza to hamburgers and hamburgers to hot dogs, then if preferences are transitive

• A)at times she could be indifferent among the three items.
• B)she must prefer pizza to hot dogs.
• C)she could prefer hamburgers to pizza on some occasions but not hot dogs to pizza.
• D)she could prefer hot dogs to pizza on some occasions but not hamburgers to hot dogs.

---

Definitions:

Net Operating Losses

Financial losses that occur when a company's allowable deductions exceed its taxable income, which can be carried over to reduce future taxable income.

Intra-entity Gross Profit

Profits recognized from transactions that occur within the same company, not yet realized by the external market.

Income Tax Liability

The total amount of taxes owed by an individual or a business entity to the federal, state, or local government based on income.

Operating Income

Income generated from the core business operations of a company, excluding income from investments and expenses not related to the primary business activities.