One piece of evidence that possibly supports the bounded-rationality assumption of behavioral economics is that experiments appear to have shown that
A) people make different decisions in calm situations than in situations in which emotions come into play.
B) people make the same decisions in calm situations than in situations in which emotions come into play.
C) total utility is maximized when marginal utility is equal to zero.
D) total utility is declining when marginal utility is negative.

Question

Quizplus · Accepted Answer

The fact that people make different decisions in calm situations than in situations in which emotions come into play suggests that their decision-making process is not always rational or consistent, which supports the bounded-rationality assumption of behavioral economics.

One Piece of Evidence That Possibly Supports the Bounded-Rationality Assumption