If People Act as If They Systematically Pursue Their Own

question 173

Multiple Choice

If people act as if they systematically pursue their own self-interest, then they will most likely

• A) respond irrationally to any incentive.
• B) respond to a given incentive in a random manner.
• C) respond predictably to a given incentive.
• D) not respond to any incentive.

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Definitions:

Stable Dividends

Dividends that are consistently paid out by a company at a steady rate, regardless of the company's earnings fluctuations.

Ex-Dividend Date

The date on which a stock trades without a declared dividend that has yet to be paid. Four days prior to the date of record.

Business Days

Workdays typically from Monday to Friday, excluding public holidays and weekends, used in the context of official and financial transactions.

Record Date

The specific date set by a company on which the shareholders must be on the company's books to be eligible to receive a dividend or vote.