Which of the Following Statements Is True of Rational Basis

question 6

Multiple Choice

Which of the following statements is true of rational basis analysis?

• A) This analysis is an extremely lenient level of scrutiny that presumes the regulation is constitutional.
• B) This analysis generally requires that the classification serves important governmental objectives and is substantially related to the achievement of those objectives.
• C) Under this analysis, the statute is unconstitutional unless the government demonstrates that it is pursuing a compelling governmental interest in the least intrusive manner.
• D) This analysis generally is used to evaluate restrictions on commercial speech or discrimination on the basis of certain suspect classifications.

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Definitions:

Pilferage

A small amount of theft.

Holding Costs

Expenses related to keeping inventory in storage, including warehousing, insurance, and spoilage costs, which are part of the overall inventory carrying costs.

Safety Stock

Additional inventory beyond the expected demand, held to guard against variability in market demand or supply chain disruptions.

ABC Analysis

A method of categorizing inventory into three classes (A, B, and C) based on their importance, with A being the most valuable and C being the least.