If psychological limitations and other complications cause people to be unable to examine and think through every possible choice available to them and rely instead on rules of thumb, then these individuals exhibit
A)unbounded rationality.
B)normative thinking.
C)bounded rationality.
D)positive thinking.

Question

Quizplus · Accepted Answer

Bounded rationality is the concept that people have limitations in their ability to gather and process information, which leads them to rely on simpler decision-making strategies such as rules of thumb or heuristics. This is a more realistic description of how people make decisions compared to unbounded rationality, which assumes that people have unlimited cognitive abilities to analyze all available information. Normative thinking and positive thinking are not relevant to the concept of decision-making limitations.

If Psychological Limitations and Other Complications Cause People to Be