A Decision Maker Who Is Irrational

question 60

Essay

A decision maker who is irrational:
A.chooses an option that makes him or her worse off rather than choosing another available option.
B.chooses the option that makes him or her better off rather than choosing another available option.
C.allocates income in order to maximize his or her satisfaction from consuming goods and services.
D.seeks to maximize business profit.

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Definitions:

Living Standards

A measure of the wealth, comfort, material goods, and necessities available to individuals or societies.

U.S. Investment

The activity of allocating resources, usually in the form of capital or money, into the United States' financial assets or business ventures with the expectation of achieving a profit.

Gross Savings

The total amount saved by an economy before accounting for depreciation.

Dramatically Slowed Down

A significant decrease in the pace or speed at which processes, developments, or activities occur.