Which of the Following Is Not an Assumption Usually Made

question 1

Multiple Choice

Which of the following is not an assumption usually made about markets and market participants?

• A)Collective welfare maximization
• B)Self-interested behavior
• C)Scarce resources
• D)Rational behavior

Identify the characteristics and prerequisites for effective participative decision-making and creative problem-solving.

Understand the concept and conditions that encourage groupthink.

Describe the rational model of decision making and its importance.

Explain how organizations can facilitate creative decision making.

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Definitions:

Escalating Commitment

The phenomenon of individuals or organizations continuing to invest in a decision, project, or course of action despite evidence of its failure.

Anchoring Bias

A cognitive bias where an individual depends too heavily on an initial piece of information (the "anchor") when making decisions.

Escalating Commitment

A behavioral pattern where an individual or organization continues to follow a failing course of action due to emotional attachment or the desire to justify prior investments.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making by reducing complex problem-solving to simpler judgment processes.