Which of the Following Sets of Personal Characteristics Best Reflects

question 26

Multiple Choice

Which of the following sets of personal characteristics best reflects what behavioral economists assume about how people make decisions?

• A)People are irrational, are prone to systematic errors, have stable preferences, and care about fairness.
• B)People are rational, adjust for errors, have stable preferences, and easily resist temptation.
• C)People care deeply about fairness, eagerly and accurately calculate ways to help others, assess future and present options equally well, and resist temptations in their selflessness.
• D)People have preferences that depend on context, avoid and are bad at computation, often give in to temptation, and are often selfless in their behavior.

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Definitions:

Operating Department

A unit or division within a company that is directly involved in conducting core business operations, such as production or sales.

Garments

Clothing items or articles of dress; may also relate to the industry involved in designing and selling clothes.

Rental Expense

Rental Expense refers to the cost incurred for renting a property or equipment, categorized as an operating expense in financial accounting.

Square Feet

A measure of area used primarily in the United States, equivalent to the area of a square with sides one foot in length.