Rationalization Interferes with Good Decisions When the Decision Maker Focuses

question 66

True/False

Rationalization interferes with good decisions when the decision maker focuses more on weighing alternatives against previously defined criteria than on justifying an alternative.

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Definitions:

Better Technology

Improvements or advancements in technology that increase efficiency or productivity.

Concave Production Possibilities Curve

A graphical representation indicating increasing opportunity costs as more of one good is produced, resulting in a bowed-out shape.

Economic Resources

These are the assets, materials, and inputs used to produce goods and services, including labor, capital, and natural resources.

Opportunity Costs

The value of the foregone alternative when a decision is made; essentially, the cost of choosing one option over another.