The Rule of Rational Choice Is That in Trying to Make

question 163

Multiple Choice

The rule of rational choice is that in trying to make themselves better off,people alter their behavior if the expected marginal benefits to them from doing so ____ the expected marginal costs they will bear.

• A) exceed.
• B) equal.
• C) are less than.
• D) Either a. or b.

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Definitions:

Economically Important Relationships

Linkages or interactions between economic entities or factors that significantly influence outcomes such as growth, inflation, or market dynamics.

Common-size Balance Sheet

A financial statement displaying all line items as a percentage of total assets, facilitating comparison across companies or periods.

Total Assets

The sum of all assets owned by a business, including cash, inventory, property, and equipment, reflecting the total resources of an entity.

Comparative Financial Statements

Financial statements that present the financial position and performance of a company over multiple periods, facilitating trend analysis and comparison.