Herbert Simon, One of the First Social Scientists to Combine

question 445

Multiple Choice

Herbert Simon, one of the first social scientists to combine the study of economics and psychology, suggested that humans should be viewed as

• A)rational maximizers.
• B)satisficers.
• C)independent thinkers.
• D)signalers.

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Definitions:

Production

The process of creating goods or services by combining labor, machinery, and materials resources.

Returns to Scale

The rate at which output increases as inputs are increased proportionally.

Long-Run Average Total Cost

The average cost per unit of output when all input factors are variable, and economies of scale are fully exploited.

Production

The process of creating goods and services from various inputs like labor, knowledge, and raw materials.