Economists Assume That Rational People

question 150

Multiple Choice

Economists assume that rational people

• A)never use all available information as they act to achieve their goals.
• B)undertake activities that benefit others and hurt themselves.
• C)only weigh the benefits and costs of the most desirable alternative actions.
• D)respond to economic incentives.

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Definitions:

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The current cost of replacing an asset with another one of similar kind and quality in its existing condition.

Mortgage

A secured loan where property or real estate is used as collateral, with the borrower agreeing to pay back the loan with a predetermined set of payments.

Bankruptcy Petition

A legal document filed by an individual or corporation declaring inability to repay debts, thus seeking relief through bankruptcy court.