The Outcomes That Result Given the Actual Decision Made and the State

question 18

Multiple Choice

The outcomes that result given the actual decision made and the state of nature that occurs are referred to as ______.

• A)consequences
• B)states of nature
• C)payoffs
• D)decision alternatives

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Definitions:

Paradox Of Thrift

The economic theory that suggests individual savings can lead to a decrease in aggregate demand, thus hindering economic growth.

Thrifty

Showing care and consideration in managing resources and finances to avoid waste.

Deficit Reduction Legislation

Laws enacted to reduce the size of the budget deficit by increasing revenue or decreasing government spending.

Excise Tax

A tax levied on certain goods, services, or transactions, often with the aim of reducing consumption of the taxed items.