Rational Choice

question 24

Multiple Choice

Rational choice

• A) is a choice that uses the available resources to best achieve the objective of the person making the choice.
• B) is always efficient.
• C) is what you must give up to get what you want.
• D) is made by comparing different incentives.
• E) provides the answer to only the "how" question.

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Definitions:

Capital Expenditure

Funds used by an organization to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.