Before Simon's work, most economic theorists believed that people made _____ economic choices.
A)rational
B)irrational
C)simplistic
D)complex

Question

Quizplus · Accepted Answer

Before Herbert A. Simon's work, the prevailing theory in economics was that people made rational economic choices, aiming to maximize their utility or profit based on the information available to them. Simon challenged this view with his concept of "bounded rationality," suggesting that while people aim to make rational decisions, their rationality is limited by the information they have, their cognitive limitations, and the finite amount of time they have to make decisions.

Before Simon's Work, Most Economic Theorists Believed That People Made