Which of the Following Statements About Programmed Decisions Is True

question 21

Multiple Choice

Which of the following statements about programmed decisions is true?

• A) They have little or no precedent.
• B) They are relatively unstructured.
• C) They include routine, repetitive decisions.
• D) They are more difficult to make than nonprogrammed decisions.
• E) They require a creative approach by the decision maker.

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Definitions:

Hedonic Treadmill

A theory suggesting that people continually seek new levels of stimulation or material goods to maintain happiness, but generally return to a stable level of happiness despite major positive or negative changes.

Prospect Theory

Prospect theory is a behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.

Neoclassical Economics

An economic theory that focuses on how consumer demand and production costs influence price, output, and income distribution in markets.

Behavioral Economics

A field of study that examines how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions.