Which statement is an example of bounded rationality?

A) Ann proofreads her term paper six times.
B) Mary feels that she has studied enough to make an A+ on her economics exam but studies another two hours just to be sure.
C) Tim studies only an hour on the morning of his economics exam because he is satisfied just to make a passing grade.
D) Terry does his economics homework twice to be sure that he has a thorough understanding of the topic.

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Mckinzie Feimster · Accepted Answer

Final Answer : C, Explanation :  Bounded rationality refers to the idea that in decision-making, individuals are limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision. Tim's decision to study only an hour because he is satisfied with just passing reflects a limitation in his willingness to invest more time and effort for a potentially better grade, illustrating bounded rationality.

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