In the Means-Ends Heuristic

question 60

Multiple Choice

In the means-ends heuristic,

• A) the matrix approach is most useful.
• B) we disregard some aspects of the problem in order to make the problem simpler.
• C) we solve a problem by emphasizing embodied cognition.
• D) we divide the problem into a number of subproblems.

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Definitions:

Central Planning

An economic system where all major production, investment, and distribution decisions are made by a central authority, typically the government.

Free Enterprise

An economic system in which private businesses operate in competition and largely free of state control, with minimal government intervention.

Price Mechanism

The method through which changes in supply and demand cause prices to increase or decrease, directing how resources are distributed in a market-based economy.

Market Failure

An instance where goods and services are distributed by an unregulated market in a manner that is not optimum, frequently causing a reduction in the total wellbeing of society.