Asked by Elias Montano on Jul 04, 2024
Verified
Which statement is an example of bounded rationality?
A) Ann proofreads her term paper six times.
B) Mary feels that she has studied enough to make an A+ on her economics exam but studies another two hours just to be sure.
C) Tim studies only an hour on the morning of his economics exam because he is satisfied just to make a passing grade.
D) Terry does his economics homework twice to be sure that he has a thorough understanding of the topic.
Bounded Rationality
The concept that when individuals make decisions, their rationality is limited by the information they have, the cognitive limitations of their minds, and the time available to make the decision.
Good Enough
A standard or condition that satisfies the basic requirements or criteria, without needing to be perfect.
- Discover and describe how bounded rationality influences the decision-making procedure.
Verified Answer
MF
Mckinzie FeimsterJul 05, 2024
Final Answer :
C
Explanation :
Bounded rationality refers to the idea that in decision-making, individuals are limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision. Tim's decision to study only an hour because he is satisfied with just passing reflects a limitation in his willingness to invest more time and effort for a potentially better grade, illustrating bounded rationality.
Learning Objectives
- Discover and describe how bounded rationality influences the decision-making procedure.
Related questions
When a Person Makes a Quick Decision Without Taking the ...
Managers Who Exhibit Bounded Rationality ...
Nobel Prize Winner Herbert Simon Suggested That Managers Use ________ ...
Nobel Prize Winner Herbert Simon Suggested That Managers Use Bounded ...
In Evaluating Alternative Solutions, Decision Makers with Bounded Rationality ...