The concept that people have the time and ability to process only a limited amount of information with which to make decisions is known as:
A) satisficing.
B) bounded rationality.
C) the classical model of decision making.
D) the normative approach.
E) intuition.

Question

Quizplus · Accepted Answer

Bounded rationality is the concept that people have limited time and cognitive resources to make decisions, and therefore can only process a certain amount of information. Satisficing refers to settling for a satisfactory option instead of the optimal one, while the classical model and normative approach are specific decision-making models. Intuition is a separate concept that refers to making decisions based on instinct or feelings.

The Concept That People Have the Time and Ability to Process