In Applying the Four-Step Decision-Making Framework, Which of the Following

question 49

Multiple Choice

In applying the four-step decision-making framework, which of the following is a difference in individuals' and organizations' decision making process?

• A)Individuals' goals might have several factors whereas organizations tend to have focused goals.
• B)Individuals' goals tend to be clear, whereas organizations' goals tend to be unclear.
• C)Individuals' goals tend to be long-term, whereas organizations' goals tend to be short-term.
• D)Individuals' goals' may be monetary or nonmonetary, whereas organizations' goals are always monetary.
• E)All of the above are differences in individual and organizational decisions.

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Definitions:

Disposable Income

The total amount of money available for an individual or household to spend or save after taxes have been deducted.

Consumption

The use of goods and services by households, constituting one of the major components of GDP.

APC

Average Propensity to Consume, which is the fraction of income that is consumed rather than saved.

MPS

The marginal propensity to save refers to the portion of each additional dollar of income that is set aside for savings instead of being spent.