Ask Question
BusinessBusiness
11 December, 03:16

Which of the following statements best demonstrates the concept of bounded rationality?

A. Individuals make decisions as if they had understood and examined every possible alternative.

B. Individuals make short-run choices that are not consistent with their long-term goals.

C. Individuals do not intentionally make decisions that would leave them worse off.

D. Individuals act in their own self-interest.

+3
Answers (1)
  1. 11 December, 04:45
    0
    The correct answer is option B.

    Explanation:

    Individuals always make decisions that they believe would make them better off. They never make any decision intentionally that makes them worse off.

    But while making decisions the individuals cannot examine all the choices available to them because it will take too much time. So they generally follow the rules of thumb while making decisions.

    Individuals often make short run decisions which are not compatible to their long term goals. This is an example of bounded rationality.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following statements best demonstrates the concept of bounded rationality? A. Individuals make decisions as if they had ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Jack holds an ownership interest of 59 % and Teresa holds an ownership interest of 41 % in the J and T Partnership.
Answers (1)
A company purchased equipment for use in the business at a cost of $36,000, one-fourth was paid in cash, and the company signed a note for the balance. The journal entry to record this transaction will include a:
Answers (1)
A real estate investor researches 4-plex apartment complexes in a city and finds that from 2000 to 2012, the average price of the 4-plex is approximated by p (t) = 0.15e0.20t million dollars, where t is the number of years since 2000.
Answers (2)
Splish Brothers Inc. began the year 2022 with retained earnings of $658000. During the year, the company sold additional shares of stock for $1023000, recorded revenues of $587000, expenses of $376000, and paid dividends of $143000.
Answers (1)
Accountants that have a Certificate in Public Accounting (CPA): a. may be held responsible to provide assurance concerning the reliability of a firm's financial statements. b. are the only accountants permitted to serve as external auditors. c.
Answers (1)
New Questions in Business
A small company has 5000 shares. Lauren owns 200 of these shares. The company decides to split its shares. What is Lauren's ownership percentage after the split?
Answers (1)
What are the two facets of a mode of production according to E. K. Hunt? Define them.
Answers (1)
Assume that a risky security pays an average cash flow of $100 in one year. The risk-free rate is 5%, and the expected return on the market index is 13%.
Answers (1)
Jeremy is considering forms of business organization, including the limited liability company (LLC), for his concessions business-Kettle Popt-Korn. Most states require that an LLC have
Answers (1)
is the process managers use to continually monitor all phases of the production process to ensure that quality is being built into the product from the beginning and that quality is not being inspected into the product at the end of the production
Answers (1)
Home » Business » Which of the following statements best demonstrates the concept of bounded rationality? A. Individuals make decisions as if they had understood and examined every possible alternative. B.
Sign Up Forgot Password?