The Theory of Bounded Rationality, Based on Rules of Thumb

question 43

Multiple Choice

The theory of bounded rationality, based on rules of thumb such as "the value of a product is indicated by its price," may result in:

• A) diminishing marginal utility.
• B) constant marginal utility.
• C) an upward-sloping demand curve.
• D) an upward-sloping supply curve.

---

Definitions:

External Locus

The belief that one's life events are largely influenced by external forces or the environment rather than personal actions.

Toe Dipper

An individual or entity that cautiously tests or explores a new venture, idea, or market with minimal commitment.

Laptop Computer

A portable personal computer designed for mobile use, integrating most components of a desktop computer, including display, keyboard, and a pointing device.

Technology Personality

The characteristic patterns of thought, feeling, and behavior that make a person's relationship with technology unique.