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.