What is the goal of human action in decision making,according to the subjective expected utility theory?
A)Utilities for a given action may be predicted for all persons within a given culture.
B)In making decisions,people seek to maximize pleasure and minimize pain.
C)In making decisions,people seek to maximize their maximum gain.
D)In making decisions,people seek to maximize their minimum gain.

Question

Quizplus · Accepted Answer

According to the subjective expected utility theory, the goal of human action in decision making is to maximize pleasure (gain) and minimize pain (loss). This theory assumes that people rationally weigh the probability and magnitude of potential outcomes and choose the option that maximizes their expected utility. Therefore, option B is the best choice as it correctly describes the goal of human action in decision making according to this theory.

What Is the Goal of Human Action in Decision Making,according