Herbert Simon Believed That the Public Uses Rules of Thumbs

question 93

Multiple Choice

Herbert Simon believed that the public uses rules of thumbs to predict inflation in the future because:

• A) inflation is usually constant.
• B) the public lacks the sophistication needed to analyze the complexity of the economy.
• C) he believes that the public is irrational.
• D) the economy moves in very predictable ways.

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Definitions:

Shared Values

Core beliefs or principles that are collectively regarded as important by members of a group, organization, or society.

Common Cultural Assumptions

are the shared beliefs and values that are implicitly understood and followed by members of a particular culture.

Geert Hofstede

A Dutch social psychologist best known for his research on cross-cultural groups and organizations, especially for his theory of cultural dimensions.

Daimler Benz

A global automobile manufacturer known for producing high-quality, luxury vehicles; now part of Daimler AG.