Which of the Following Factors Determines Whether a Decision Is

question 26

Multiple Choice

Which of the following factors determines whether a decision is programmed or nonprogrammed?

• A) Whether the problem is new or routine
• B) The number of people involved in the outcome
• C) The amount of time available
• D) The amount of money involved in the solution

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Definitions:

Opportunity Cost

The cost of foregone alternatives, representing the benefits one could have received by taking a different decision.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one product for another.

Demand Curve

A curve showing the relation between the price of a good and the quantity consumers are willing and able to buy per period, other things constant.

Market Demand Curve

A graphical representation that depicts the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.