What Do Economists Generally Assume About the Capacity of Consumers

question 14

Multiple Choice

What do economists generally assume about the capacity of consumers to make decisions?  

• A) that buyers and sellers have all the information they need to make decisions 
• B) that buyers acquire information as long as the additional benefits exceed the additional costs of acquiring this information 
• C) that decision makers never make mistakes 
• D) that economic decisions result from random behaviour

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Definitions:

Trust Creation

The process of setting up a trust, wherein a trustee holds property or assets for the benefit of a third party, known as the beneficiary.

Consideration

The payment or promise of something of value given by one party to another in exchange for an act or promise that forms the basis of a contract.

Spendthrift Trust

A trust designed to prevent beneficiaries from squandering their inheritance by controlling the distribution of assets.

Beneficiary Interest

Refers to the rights or advantages accruing to a beneficiary, generally in the context of trusts or estates.