Question

Observations of violations of consumer optimum predicted by consumer choice theory could provide support for   I. utility analysis II. bounded rationality III. behavioral economics A. both II and III. B. both I and II. C. I only. D. III only.

Answer 1

Answer:

A. both II and III.

Explanation:

Bounded rationality refers to the idea which states that when making decisions, the rationality of an individual is limited by the information he has.

Behavioral economics refers to the effects, psychological, emotional and social factors have on the decision making process of individuals and institutions.