Which Statement Is True Within the Framework of Rational Choice

question 8

Multiple Choice

Which statement is true within the framework of rational choice economics?

• A)When relative prices change a rational consumer's preference pattern will be altered
• B)The budget line and the indifference curves are interdependent in the maximizing models
• C)Indifference curves are empirically determined functions that are identical for all persons who are truly rational choice operators
• D)When the relative prices change a rational consumer's preference will not be altered

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Definitions:

Management Reserve

A budgetary allocation set aside to address unknown risks and unforeseen costs in a project.

Scope of the Project

The sum of all the project work and objectives to be achieved; this includes tasks, goals, deliverables, and constraints.

Managing Cash Flow

The process of monitoring, analyzing, and optimizing the net amount of cash receipts minus cash expenses.

Company's Money

The financial resources or capital belonging to a corporation, used for operational, investment, and strategic purposes.