If People Follow the Rule of Rational Choice They Will

question 145

Multiple Choice

If people follow the rule of rational choice they will choose options that they think will:

• A)​create more average benefits than average costs
• B)​create more additional costs than additional benefits
• C)​create equivalent additional benefits and additional costs
• D)​create more additional benefits than additional costs

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Definitions:

Liquidated Debt

A debt with a known, fixed amount that is not disputed by either party.

Unliquidated Debt

A debt for which the exact monetary value has not been determined.

Preexisting Duty

An obligation that a party is already legally bound to fulfill, which cannot serve as consideration for a new contract.

Accord and Satisfaction

A legal settlement where an agreement is made to discharge a claim by providing some form of compensation that differs from the original obligation.