Which of the Following Is NOT an Alleged "Unrealistic" Assumption

question 261

Multiple Choice

Which of the following is NOT an alleged "unrealistic" assumption that proponents of behavioral economics suggest are commonly utilized in traditional economic models based on the rationality assumption?

• A) unbounded selfishness
• B) unbounded rationality
• C) unbounded will power
• D) unbounded resources

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained within the company instead of being paid out to shareholders as dividends, often used for investment or to pay off debt.

IRR

Internal Rate of Return; a financial measurement tool utilized to assess the potential profit of investment opportunities.

WACC

Weighted Average Cost of Capital, a calculation that reflects the average rate of return a company is expected to pay to all its security holders.

After-Tax Value

The value of a transaction or investment after all taxes have been deducted.