Question

Bounded rationality says we are likely to ________?

1) Make rational decisions
2) Make irrational decisions
3) Make random decisions
4) Make emotional decisions

Answer 1

Bounded rationality suggests that individuals are likely to make irrational decisions due to cognitive limitations and heuristics.

Step-by-step explanation:

Bounded rationality suggests that individuals are likely to make irrational decisions. Bounded rationality is the idea that people have cognitive limitations that prevent them from processing and analyzing all available information to make fully rational decisions. Instead, individuals use heuristics, or mental shortcuts, which can lead to biases and irrational decision-making.