Which One of the Following Would Constitute a Reward

question 18

Multiple Choice

Which one of the following would constitute a reward?

• A) a person buying a car after seeing an ad about it
• B) a person returning a lost item after seeing an ad about it
• C) a seller accepting a bid for an item
• D) a seller making an invitation for offers

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Definitions:

Efficient Markets Hypothesis

A theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the average market return.

Random Walk

The path of a variable whose changes are impossible to predict.

Marginal Utility

The additional satisfaction or usefulness gained from consuming one more unit of a good or service.

Risk-averse

Describes individuals or entities that prefer to avoid risk and would rather choose a certain outcome over a gamble with a potentially higher, but uncertain, return.