What Is NOT True About Rational Choice

question 31

Multiple Choice

What is NOT true about rational choice?

• A) It can result in different decisions for different individuals.
• B) It involves comparing costs and benefits.
• C) It might turn out not to have been the best choice after the event.
• D) It is a choice that uses the available resources to best achieve the objective of the person making the choice.
• E) It is the same for all individuals.

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Definitions:

Principal-agent Relationship

A dynamic between a principal, who delegates tasks, and an agent, who performs tasks on the principal's behalf, often leading to issues related to alignment of interests.

Decision Makers

Individuals or groups responsible for making choices that influence outcomes or the direction of a project, strategy, or organization.

Information

Data, facts, or knowledge conveyed or represented in a format that is understandable and can be used to make decisions.

Car Salesman

A person who sells new or used cars at a dealership and is often involved in negotiating prices and financing terms with buyers.