Which of the Following Is Not an Example of Rational

question 32

Multiple Choice

Which of the following is not an example of rational self-interest,as defined by economists?

• A)A person risking his or her life to save someone else.
• B)A wealthy widow leaving a million dollars in her will to her cat.
• C)A farmer turning down an offer for his land that would make him independently wealthy.
• D)A collector paying $4 million for a particular painting,when other paintings by the same painter were available at a lower price.
• E)An individual paying a high price for an electronic widget at a store instead of buying it at the adjacent store offering the same widget at a lower price.

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Definitions:

Ledger Account

A record in the ledger that contains the financial information of a specific account, showing all the changes in that account.

Balance Column

A column in ledgers or financial statements showing the difference between debits and credits.

Account Entry

An accounting record that logs a financial transaction in the books of accounts, impacting the balance sheet and/or income statement.

Debt Ratio

A financial ratio that measures the extent of a company’s leverage, computed by dividing total liabilities by total assets.