Read the following passage and then answer the question below.
The term “bounded rationality” describes a more realistic conception of human problem-solving ability. People might satisfice in some circumstances rather than trying to accurately calculate the best decision.
Judging from context, what is the best definition for satisfice?
a. to sacrifice present satisfaction for the promise of greater satisfaction in the future
b. to forgo maximizing utility in one situation in order to maximize utility in another
c. to alter one’s experience of satisfaction in order to maximize the satisfaction offered by an available good
d. to find the option that provides the minimum level of satisfaction required
d. to find the option that provides the minimum level of satisfaction required
You might also like to view...
A cut in the income tax rate ________ the tax wedge and ________ employment, saving, and investment
A) decreases; increases B) increases; increases C) does not change; increases D) decreases; does not change E) increases; decreases
Suppose that there is a current account deficit of $250 billion and a capital account surplus of $260 billion. It may be concluded that the
A) overall balance of payments is +10. B) overall balance of payments is -10. C) official reserve transaction account balance is +10. D) official reserve transaction account balance is -10.
Which of the following statements generates the greatest amount of disagreement among economists?
a. Increases in the money supply shift aggregate demand to the right. b. In the long run, increases in the money supply increase prices, but not output. c. Recessions are associated with decreases in consumption, investment, and employment. d. Government should use fiscal policy to try to stabilize the economy.
Expansionary policy that followed the 2008 recession:
A. did not reduce unemployment as much as desired. B. led to higher inflation rates than expected. C. did not reduce the trade deficit as much as desired. D. led to higher growth rates than expected.