The Assumption of Rationality Implies That Market Participants

question 50

Multiple Choice

The assumption of rationality implies that market participants:

• A)always choose the option with the highest gross benefit.
• B)assess expected benefits and expected costs.
• C)do not make decisions under uncertainty.
• D)do not care about benefits or costs accruing in the future.

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Definitions:

Pay Today

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Filibuster

A parliamentary procedure where debate over a proposed piece of legislation is extended, allowing one or more members to delay or entirely prevent a vote on the proposal.

Rules Committee

A committee in the U.S. House of Representatives responsible for determining under what rule other bills will come to the floor.