Which of the Following Is an Unrealistic Assumption Made in the Rational

question 135

Multiple Choice

Which of the following is an unrealistic assumption made in the rational decision making model?

• A)People often don't understand the decision to be made.
• B)People know few of their available choices.
• C)People want to make optimal decisions.
• D)People have perceptual biases.

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Definitions:

1990's

A decade characterized by major global events, technological advancements, and cultural shifts, lasting from 1990 to 1999.

High Saving Rate

A high saving rate indicates a significant portion of an economy's income is not spent on current consumption but saved for future use, potentially impacting economic growth and investment.

Aggregate Demand

Sum total of the requirement for goods and services across an economy, based on a particular price level over a defined period.

Long-run Output

The total quantity of goods and services produced by an economy over a long period, when all inputs are considered variable.