The Three Main Models That Managers Use to Make Decisions

question 89

Multiple Choice

The three main models that managers use to make decisions are ________.

• A)rational, bounded rational, and intuitive
• B)rational, irrational, and bounded rational
• C)intuitive, unintuitive, and rational
• D)bounded rational, intuitive, and systematic

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Definitions:

Rules of Thumb

Simple, general principles or guidelines that are typically derived from practice rather than theory.

Efficiency Wage Theory

Suggests employers pay a higher wage than the market equilibrium to increase worker productivity and loyalty.

Worker Productivity

A measure of output per labor hour.

Fairness

The quality of being just, equitable, and impartial; often a subjective measure in economic and social contexts.