Knight (1921) states that we '[do not] infer the future from the present with any high degree of dependability...'. What is Knight referring to in this statement?
A) Satisficing behaviour
B) Bounded rationality
C) Risk
D) Uncertainty

Question

Quizplus · Accepted Answer

Knight is referring to the concept of uncertainty, which he distinguishes from risk. Uncertainty involves situations where the probability of outcomes cannot be known, making it impossible to predict the future with high dependability.

Knight (1921) States That We '[Do Not] Infer the Future