When Comparing the Standard Models in the Respective Fields of Economics

question 15

Multiple Choice

When comparing the standard models in the respective fields of economics and psychology, it is clear that:

• A) both economists and psychologists always assume that people behave in a fully rational way.
• B) both economists and psychologists always assume that people do not act in a fully rational way.
• C) neither economists nor psychologists always assume that people behave in a fully rational way.
• D) economists generally assume that people behave in a rational way, whereas psychologists generally do not.
• E) psychologists generally assume that people behave in a rational way, whereas economists generally do not.

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Definitions:

Vroom, Yetton, and Jago

Researchers known for their decision-making model that focuses on varying leadership styles and the importance of situational factors in decision-making processes.

Authority decisions

Decisions made by individuals or bodies who hold power or authority in an organization or group.

Individual decisions

Choices or judgments made by a single person based on personal judgment, beliefs, and attitudes.

Consultative

A leadership or decision-making style that involves seeking input or feedback from others before making a final decision.