Question

Tom consistently chooses the ultimate alternative after identifying criteria and allocating weights to every alternative. This is known as ________ decision making.

A) pensive
B) cautious
C) rational
D) impulsive
E) erratic

Answer 1

Tom's methodical approach to decision-making, where he assesses criteria and allocates weights to choose the best alternative, exemplifies rational decision making.

Step-by-step explanation:

Tom is engaging in rational decision making by weighing all available options against a set of criteria and assigning different weights to each criterion.

In the process of making a rational decision, an individual will typically identify various alternatives, establish a set of criteria that the decision will impact, and weigh the potential outcomes based on the relative importance of these criteria. Then, they will evaluate each option against the established criteria and choose the alternative that ultimately maximizes their utility or satisfaction. This approach contrasts with using heuristics, which are mental shortcuts that simplify decision-making processes but do not necessarily consider all relevant information or yield the most beneficial outcome.

Since Tom carefully considers the options and chooses the one that maximizes his objectives, this describes the principles of rational decision-making, which is often idealized in economic models of behavior, although in real life, people may not always make decisions that perfectly align with this model.