According to proponents of behavioral economics, because every possible choice cannot be considered, an individual will tend to fall back on methods of making decisions that are simpler than trying to sort through every single possibility, known as
A) rules of thumb.
B) rational options.
C) irrational choices.
D) normative decisions.

Question

Quizplus · Accepted Answer

Rules of thumb refer to mental shortcuts or heuristics that individuals use to simplify complex decision-making processes. Due to cognitive limitations, individuals cannot consider every possible choice, so they rely on rules of thumb to make decisions more efficiently. Behavioral economics recognizes this phenomenon and uses it to explain why individuals may not always make rational or optimal decisions.

According to Proponents of Behavioral Economics, Because Every Possible Choice