The Principle That People Have a Limited Ability to Collect

question 94

Multiple Choice

The principle that people have a limited ability to collect and process information, to choose between their competing wants, and to work out the consequences of their actions is known as:

• A) bounded rationality.
• B) finite rationality.
• C) boundary spanning.
• D) behavioural economics.
• E) mental accounting.

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Definitions:

Employee Retirement Income Security Act

A federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.

Pension Plans

Financial arrangements that provide retirees with income during retirement, typically funded by employers or the government.

Private Industry

The segment of the economy that is operated by individuals or corporations for profit and is not directly controlled by the government.

Family and Medical Leave Act

A US federal law requiring covered employers to provide employees with job-protected and unpaid leave for qualified medical and family reasons.