Which of the following is true of theories based on the bounded rationality models?
A) It assumes that people are inefficient processors of information.
B) It assumes that people use complete information and incomplete analyses to make decisions.
C) It assumes that people have unlimited abilities to obtain and process information.
D) It assumes that the human mind is fundamentally irrational.

Question

Quizplus · Accepted Answer

The bounded rationality models assume that people are not fully rational and efficient in processing information, and are limited by cognitive constraints and information asymmetry.

Answer: B 
 The bounded rationality models assume that people make decisions based on incomplete information and analysis, due to the limits of their mental processes and the complexity of the environment.

Answer: C 
 This statement is incorrect, as the bounded rationality models explicitly acknowledge the limitations of human cognitive abilities and the constraints of the environment.

Answer: D 
 This statement is too extreme and inaccurate, as the bounded rationality models do not suggest that the human mind is inherently irrational, but rather that it faces cognitive and environmental constraints that affect decision-making.

Which of the Following Is True of Theories Based on the Bounded