If Psychological Limitations and Other Complications Cause People to Be

question 163

Multiple Choice

If psychological limitations and other complications cause people to be unable to examine and think through every possible choice available to them and rely instead on rules of thumb, then these individuals exhibit

• A)unbounded rationality.
• B)normative thinking.
• C)bounded rationality.
• D)positive thinking.

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Definitions:

Price Variance

The difference between the actual cost of a good or service and its planned or standard cost, indicating how effectively resources are being used.