Which of the following is NOT an assumption of the classical model of decision making?

• A. Individuals always act to maximize their utility.
• B. Individuals have complete information about all alternatives.
• C. Individuals are influenced by social norms and emotions.
• D. Individuals are rational and consistent in their choices.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the classical model of decision making, which assumes that individuals are rational agents who seek to maximize their utility when making choices.
2. Step 2: Recognize that the classical model assumes individuals have complete information about all available alternatives, allowing them to make fully informed decisions.
3. Step 3: Note that the model also assumes individuals are consistent in their preferences and choices, meaning their decisions follow a logical and stable pattern.
4. Step 4: Identify that the classical model does NOT typically incorporate the influence of social norms and emotions on decision making, as it focuses on rationality and utility maximization.
5. Step 5: Conclude that the statement 'Individuals are influenced by social norms and emotions' is NOT an assumption of the classical model of decision making.