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Leticia Smajlovic
on Dec 19, 2024

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Heuristics

A) are rules of thumb that generate decisions that generally maximize net benefits.
B) take a long time to develop and are therefore avoided by rational decision makers.
C) are shortcuts that save time and energy in decision making.
D) always waste mental resources by leading people to suboptimal outcomes.

Heuristics

Mental shortcuts or "rules of thumb" that simplify decision-making processes, often used when facing complex problems or incomplete information.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Net Benefits

The total benefits of some activity or policy less the total costs of that activity or policy.

  • Comprehend the importance of heuristics in decision-making processes and their impact on economic behavior.
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TN
Tommy NguyenDec 19, 2024
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