Economics Does Not Study Correct or Incorrect Behaviors but Rather

question 198

Multiple Choice

Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________, meaning they make the best decisions given their knowledge of the costs and benefits.

• A)equitably
• B)rationally
• C)emotionally
• D)selfishly

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Definitions:

Office Supplies

Consumable items and minor equipment used in an office setting, such as paper, pens, and staplers.

Petty Cash

Petty cash is a small amount of cash on hand used for covering minor, incidental expenses within a business.

Journal Entry

A record of a business transaction in the accounting journal that shows the accounts and amounts debited and credited.

Merchandise Inventory

Goods a business has acquired to sell to customers but has not yet sold.