The principle that people have a limited ability to collect and process information, to choose between their competing wants, and to work out the consequences of their actions is known as:
A) bounded rationality.
B) finite rationality.
C) boundary spanning.
D) behavioural economics.
E) mental accounting.

Question

Quizplus · Accepted Answer

The principle that people have a limited ability to collect and process information, to choose between their competing wants, and to work out the consequences of their actions is known as bounded rationality. This means that individuals are not always able to make fully rational decisions and are limited by the information and cognitive abilities they possess.

The Principle That People Have a Limited Ability to Collect