Asked by Mariela Nieto on Jun 03, 2024
Verified
The decision to give a birthday present to a friend is:
A) decision making using bounded rationality.
B) behavior based on risk aversion.
C) a rational decision if the person giving the gift is concerned about the recipient's welfare.
D) an irrational economic decision because it reduces the economic payoff of the person giving the gift.
Rational Decision
A decision-making process that is based on making choices that result in the optimal level of benefit or utility for an individual.
Economic Payoff
The return or financial outcome received from an investment, decision, or policy, typically expressed in terms of profit or cost savings.
- Comprehend the idea of rational decision-making and what determines it.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
C
Explanation :
Giving a birthday present to a friend can be considered a rational decision if the person giving the gift is concerned about the recipient's welfare, such as showing love or appreciation. It is not always about the economic payoff for the person giving the gift.
Learning Objectives
- Comprehend the idea of rational decision-making and what determines it.
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