Ideal Standards

question 76

Multiple Choice

Ideal standards

• A) are rigorous but attainable.
• B) are the standards generally used in a master budget.
• C) reflect optimal performance under perfect operating conditions.
• D) will always motivate employees to achieve the maximum output.

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Definitions:

Time Inconsistency

A situation where a person's preferences change over time in such a way that what is preferred at one point in time is inconsistent with what is preferred at another time.

Behavioral Economics

A field of economics that examines the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Economic Behavior

The study of how individuals, households, and organizations make choices to allocate resources in the midst of scarcity and the effects of these decisions on markets and the economy.

Dictator Game

An experimental economics scenario where one player, the "dictator," determines how to split an endowment between themselves and another player.