Rationality in the Household Decision-Making Process Means That

question 159

Multiple Choice

Rationality in the household decision-making process means that

• A)all households make the same decisions
• B)everyone in the household agrees on all decisions
• C)households act in their own best interests
• D)households want to earn as much income as possible
• E)all households would make the same decisions given the same information on products qualities and prices

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Definitions:

Net Worth

The value of all assets a person or corporation owns, minus the liabilities they owe; a measure of financial health.

Liabilities

A debt owed by a business to another organization or individual.

Assets

Resources owned by a business or individual that have economic value and can provide future benefits.

Venture Capitalist

An investor who provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets.