The classical model of decision making is based on __________ economic assumptions.
A) arbitrary
B) irrational
C) rational
D) uncertain
E) vague

Question

Quizplus · Accepted Answer

The classical model of decision making assumes that decision makers are rational and make choices that maximize their expected utility. This means that they have access to all relevant information, are able to evaluate all options and their potential outcomes, and have clear preferences and goals. This model is based on a set of assumptions about the nature of rationality and human behavior that has been criticized for not accurately reflecting how people actually make decisions.

The Classical Model of Decision Making Is Based on __________