In the Context of Human Compromises in Decision Making,bounded Rationality

question 76

Multiple Choice

In the context of human compromises in decision making,bounded rationality occurs when a decision maker:

• A) tends to select an alternative that he or she has tried before and that has delivered acceptable results.
• B) considers alternatives only until one is found that meets his or her minimum criteria for acceptability.
• C) relies on his or her intuition and gut instincts, while analyzing alternatives, instead of collecting impartial data.
• D) tends to favor solutions that he or she believes can be justified to others.

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Definitions:

Worst-off Person

Refers to an individual in a group or society who has the lowest welfare, income, or standard of living, often considered in discussions of equity and distributive justice.

Distribution of Income

Refers to the way in which total income is shared among the holders of different types of assets within an economy.

Negative Income Tax

A tax system that collects revenue from high-income households and gives subsidies to low-income households.

Family Income

The total amount of money earned by members of a family, typically measured annually.