Rather Than Seeking to Rationally Understand Everything That Is Involved

question 26

Multiple Choice

Rather than seeking to rationally understand everything that is involved in a particular policy or optimize every action taken to address a problem,policy makers may actually seek to ________,which can lead to less-than-rational and less-than-efficient public policy.

• A) use bounded rationality
• B) rationalize
• C) satisfice
• D) table

---

Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which has little effect on the market value but can have legal implications.

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Split

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the company does not change.

Market Value

The current price at which an asset or service can be bought or sold in an open market.