Herbert Simon Suggested That People Are Not Rational Maximizers but Satisficers

question 202

Multiple Choice

Herbert Simon suggested that people are not rational maximizers but satisficers, meaning that they choose a course of action that is

• A)personally satisfying, with a greater emphasis on personal consumption than on fairness.
• B)socially satisfying, with a greater emphasis on fairness than on personal consumption.
• C)good enough.
• D)risk averse.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for errors, accruals, and deferrals in the accounting period.

Operating Activities

Activities that relate to the primary business operations of a company, including production, sales, and delivery of the company's products and services.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments not included in cash equivalents.

Financing Activities

Transactions involving long-term liabilities and equity, including issuing debt, repurchasing shares, and paying dividends, as part of a company's fund-raising activities.