In the Goal of Consumer Optimization,it Is Assumed That

question 30

Multiple Choice

In the goal of consumer optimization,it is assumed that

• A) consumption equals disposable income.
• B) savings are positive.
• C) more is preferred to less.
• D) the consumer is rational.
• E) the consumer consumes more than his or her disposable income.

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Definitions:

Consideration

Something of value exchanged between parties in a contract, required for the agreement to be legally binding.

Liquidated Debt

A debt for which the amount owed is known and agreed upon by both parties.

Liquidated Debt

A debt for which the exact monetary value has been determined and acknowledged by both the debtor and creditor.

Unliquidated Debt

A debt that has not been determined or fixed in amount, often because it is subject to a legal dispute or requires a judgment to ascertain its value.