In Explaining Money to His Twelve-Year-Old, Mike, the President of a Small

question 139

Multiple Choice

In explaining money to his twelve-year-old, Mike, the president of a small business, said that money is "symbolic." This should be correctly interpreted to mean that money is

• A) an artificial device that aids in the exchange of resources for products, services, and resources.
• B) a tangible asset.
• C) meaningless.
• D) abstract rather than practical.
• E) beneficial to the buyer, not the seller.

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Definitions:

Herbert Simon

An American economist and cognitive psychologist known for his research in the fields of decision-making and problem-solving, notably the concept of bounded rationality.

Behavioural Economic Theory

An approach combining psychological insights with economic theory to predict and understand human decision-making.

Ideal Goals

Objectives or aims that represent a perfect or most desirable outcome, often used as benchmarks for success or aspiration.

Frugal Heuristics

Cognitive shortcuts or rules of thumb that simplify decision making.