______ Is the Cognitive Process People Use to Make Sense

question 56

Short Answer

______ is the cognitive process people use to make sense out of the environment by selecting, organizing, and interpreting information.

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Definitions:

Rational

In economics, refers to individuals making decisions that will provide them with the greatest benefit or satisfaction given their limited resources.

Budget Constraints

The limitations on a consumer's ability to purchase goods and services based on their income and the prices of goods and services.

Preferences

Describes individuals' choices and priorities among different bundles of goods and services.

Indifference Curves

A graph showing a series of lines that represent different bundles of goods between which a consumer is indifferent.