Which of the Following Is an Assumption Usually Made About

question 12

Multiple Choice

Which of the following is an assumption usually made about markets and market participants by economists?

• A)Market participants are interested in maximizing social welfare.
• B)Market participants are generally altruistic.
• C)Market participants engage in irrational behavior.
• D)Market participants confront scarce resources.

---

Definitions:

Anticipated Dividend

The expected payment of dividends by a company to its shareholders in the future.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government Treasury bills.

Stock Index

A measurement of a section of the stock market, usually representing the performance of certain stocks or industries.

Soybean Future

A standardized contract for the future sale or purchase of soybeans, traded on a commodities exchange.