Economists Assume That Individuals

question 81

Multiple Choice

Economists assume that individuals

• A)behave in unpredictable ways.
• B)will never take actions to help others.
• C)prefer to live in a society that values fairness above all else.
• D)are rational and respond to incentives.

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Definitions:

Fair Value Adjustment Account

An accounting ledger that reflects adjustments made to ensure assets and liabilities are reported at their fair market value.

International Operations

Business activities conducted across national borders, involving transactions of goods, services, or resources between at least two countries.

Total Asset Turnover

A financial benchmark that quantifies how resourcefully a company employs its assets to achieve sales revenue.

Profit Margin

A financial ratio indicating the percentage of revenue that exceeds the costs associated with making or buying the goods sold.