Multiple Choice
According to the concept of bounded rationality, managers make decisions ________.
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0. Basic Principles of Economics
Positive and Normative Analysis
Multiple Choice
Economic policy must strike a balance between ideals and which of the following?
A
historical trends
B
political opinions
C
consumer preferences
D
practical constraints
Verified step by step guidance1
Understand the context of economic policy: Economic policy involves decisions made to influence a country's economy, often aiming to achieve certain ideals such as growth, equity, or stability.
Identify the key challenge in economic policy-making: While ideals represent the goals or values policymakers want to achieve, they must be balanced against real-world limitations.
Recognize what 'practical constraints' mean: These are the real-world limitations such as budget limits, resource availability, institutional capacities, and time constraints that restrict how policies can be implemented.
Compare the options given: Historical trends, political opinions, and consumer preferences are important factors but do not capture the fundamental limitation that policies must work within feasible boundaries.
Conclude that economic policy must balance ideals with practical constraints because without considering these constraints, policies may be unrealistic or impossible to implement effectively.
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