What Form of Decision Theory Assumes That Decision Makers Are

question 4

Multiple Choice

What form of decision theory assumes that decision makers are rational beings who always seek to strictly maximize economic goals?

• A) the theory of bounded rationality
• B) normative decision theory
• C) satisficing decision theory
• D) human optimal decision theory

---

Definitions:

Real Assets

Physical or tangible assets that have intrinsic value, such as real estate, commodities, or natural resources.

Financial Intermediaries

Institutions that act as middlemen between savers and borrowers, including banks, credit unions, and insurance companies.

Savers

Individuals or organizations that set aside a portion of their income for future use, often by depositing it into financial accounts that earn interest.

Borrowers

Individuals or entities that receive funds from a lender under the condition of returning it typically with interest.