Satisficing, Bounded Rationality and Relapse Errors
a Group of Accounting

question 41

Essay

Satisficing, bounded rationality and relapse errors
A group of accounting students was discussing which elective courses they should take as part of their degree; several comments from their conversation appear below. Place an "X" in the appropriate column to indicate whether each comment most clearly demonstrates satisficing, bounded rationality or relapse errors. $\begin{array}{c}\begin{array}{|l|}\hline\\\\\hline \text {a. I choose classes based on the cost of the}\\ \text {textbooks they require.}\\\hline \text {b. I didn't read the book in Prof. Smith's}\\\text { class at all last semester, and I did poorly. }\\\text {But, I passed. so I'm not planning to do}\\\text { the reading next time either.}\\\hline \text {c. I know what "auditing" is, so I'm taking}\\\text { as many auditing electives as I can.}\\\hline \text {d. I prefer taking courses in the morning, so I }\\\text {don't even look at courses offered later in }\\\text {the day.}\\\hline \text {e. I took my dad's advice about my classes}\\\text { last term; even though it didn't work out}\\\text { too well. I'm planning to ask him again.}\\\hline \text {f. I'm familiar with the process of preparing }\\\text {tax returns: I'm planning to take as many}\\\text { additional tax courses as possible.}\\\hline \text {g. I'm not good at management accounting.}\\\hline \text {h. I'm taking whatever courses are offered in}\\\text { time for me to graduate.}\\\hline \text {i. I've taken forensic accounting twice and}\\\text { failed both times. But, I'm going to }\\\text {register for that class again and again until}\\\text { I pass it.}\\\hline \text {j. The easier a class is, the more likely I am}\\\text { to take it.}\\\hline\end{array}\begin{array}{l|}\hline\\\text { Satisficing }\\\hline\\\\\hline\\\\\\\\\hline\\\\\hline\\\\\\\hline\\\\\\\hline\\\\\\\hline\\\hline\\\\\hline\\\\\\\\\hline\\\\\hline\end{array}\begin{array}{l|}\hline\text {Bounded }\\\text {rationality }\\\hline\\\\\hline\\\\\\\\\hline\\\\\hline\\\\\\\hline\\\\\\\hline\\\\\\\hline\\\hline\\\\\hline\\\\\\\\\hline\\\\\hline\end{array}\begin{array}{l|}\hline\text {Relapse }\\\text {errors }\\ \hline\\\\\hline\\\\\\\\\hline\\\\\hline\\\\\\\hline\\\\\\\hline\\\\\\\hline\\\hline\\\\\hline\\\\\\\\\hline\\\\\hline\end{array}\end{array}$

Recognize visual media biases and how they perpetuate sexism.

Identify various forms of discrimination and understand their implications.

Grasp the significance of unconscious bias and stereotypes in shaping attitudes and behaviors towards racial groups.

Recognize the changing dynamics of derogatory language use and attitudes towards racial minorities over time.

---

Definitions:

Cable Subscriptions

A service model where consumers pay a regular fee to access a bundled set of television channels and programs.

Profit-Maximizing Output

The level of production at which a company can achieve the highest level of profit based on its costs and the market price.

Profit-Maximizing Price

The price at which a company can sell its product or service to maximize its profit, considering demand and cost.

Demand Curve

A graph that shows the relationship between the price of a good and the quantity of that good consumers are willing to purchase at various prices.