Economists Assume That Individuals

question 81

Multiple Choice

Economists assume that individuals

• A)behave in unpredictable ways.
• B)will never take actions to help others.
• C)prefer to live in a society that values fairness above all else.
• D)are rational and respond to incentives.

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Definitions:

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted into cash in the near term.

Inventory

The totality of goods or materials a company holds for the purpose of selling in the market or using in production.

Fixed Assets

Assets that are of a permanent or long-term nature, typically used in the operations of a business, such as buildings, machinery, and equipment.

Full Capacity

The maximum level of output that a company can sustain within a given period, utilizing all available resources efficiently.