When a Decision Maker Chooses an Alternative Under Perfect Rationality

question 40

Multiple Choice

When a decision maker chooses an alternative under perfect rationality, she chooses a ________ decision, whereas under bounded rationality, she chooses a ________ decision.

• A)minimising; satisfying
• B)satisficing; maximising
• C)maximising; satisficing
• D)maximising; minimising
• E)minimising; maximising

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Definitions:

Chattel Mortgages

A loan agreement where personal movable property (chattel) is used as security for the loan, allowing the lender to take possession if the borrower defaults.

Debt Transactions

Financial operations involving the borrowing and lending of funds, where repayment is required, often with interest.

Conventional

Pertaining to widely accepted standards or methods.

Use

The act of employing something for a particular purpose.