If Individuals Are Rational, They Should Choose Actions That Yield

question 30

Multiple Choice

If individuals are rational, they should choose actions that yield the:

• A)largest total benefits.
• B)smallest total costs.
• C)smallest economic surplus.
• D)largest economic surplus.

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Definitions:

Financial Reporting

The process of producing statements that disclose an entity's financial status to management, investors, and the government.

Accelerating Cash Collection

Strategies or practices implemented by a business to decrease the amount of time between selling a product or service and receiving payment for it.

Discounting

The process of determining the present value of a future amount of money or a series of future cash flows, by applying a discount rate.

Net Realizable Value

The estimated selling price of goods or assets in the course of normal business, minus any costs associated with the sale or completion.