One Piece of Evidence That Possibly Supports the Bounded-Rationality Assumption

question 178

Multiple Choice

One piece of evidence that possibly supports the bounded-rationality assumption of behavioral economics is that experiments appear to have shown that

• A) people make different decisions in calm situations than in situations in which emotions come into play.
• B) people make the same decisions in calm situations than in situations in which emotions come into play.
• C) total utility is maximized when marginal utility is equal to zero.
• D) total utility is declining when marginal utility is negative.

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Definitions:

Biomes

Large naturally occurring communities of flora and fauna occupying major habitats, like forests, deserts, and tundras.

Converted

Changed or transformed in form, character, or function.

Overriding Climate

A dominant climate condition or change that has a significant impact on environmental and societal patterns over a wide area.

Temperature

A measure of the thermal energy of a system, reflecting how hot or cold an object is.