Practice prompt · Q:economics-and-market-foundations/frame-choice-001

Frame a choice before ranking alternatives

Check whether the learner identifies the decision maker, feasible set, constraint, objective, date, and authority before selecting an option.

Updated Aug 7, 2026 Review due Nov 7, 2026

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An analyst is asked which of several capital projects “the company should do.” The packet does not yet identify the financing limit, board authority, decision horizon, or ranking objective. What should the analyst do first?

Choose the best answer. a Choose the project with the largest advertised return before considering financing or authority. b Identify who decides, which projects fit the financing and legal constraints, the objective and horizon, evidence available at the decision date, and what could change the choice. c List every imaginable project so no opportunity is omitted, even if several exceed capacity or violate policy.

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Answer: b

Choice b. A disciplined choice frame precedes ranking and records the decision maker, feasible alternatives, constraints, objective, evidence date, authority, and revision triggers.