Which of the following describes that people cannot examine every possible choice available to them but instead use simple rules of thumb to sort among the alternatives that happen to occur to them?
A) self-interest
B) bounded rationality
C) ceteris paribus
D) normative economics

Question

Quizplus · Accepted Answer

Bounded rationality refers to the idea that individuals have limited cognitive abilities and cannot examine every possible option before making a decision. Instead, they use simple rules of thumb, or heuristics, to quickly sort through the available options and make a decision based on incomplete information.

Which of the Following Describes That People Cannot Examine Every