According to the Bounded Rationality Hypothesis, an Individual Confronting a Large

question 17

Multiple Choice

According to the bounded rationality hypothesis, an individual confronting a large number of complicated choices is most likely to respond by

• A) using a simple rule of thumb to choose among a subset of easiest-to-evaluate options.
• B) using the ceteris paribus assumption to assist in simplifying and examining each of the possible options.
• C) utilizing readily available empirical evidence to assist in evaluating every option.
• D) assessing every available choice by developing sophisticated theories regarding each option.

---

Definitions:

Sodium Hydroxide

A strong base and alkali used in various industries, known chemically as NaOH.

Animal Fat

A type of fat derived from animals, used in cooking and in the production of a variety of consumer goods.

Bases

Substances that can accept protons or donate a pair of valence electrons to form a bond and are characterized by a high pH, often above 7 when dissolved in water.

Transition Metals

Elements found in the central block of the periodic table (groups 3-12), characterized by their ability to form positive ions with incomplete d-shells.