Economics Today: The Micro View (18th Edition)
18th Edition
ISBN: 9780133885071
Author: Roger LeRoy Miller
Publisher: PEARSON
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Question
Chapter 1, Problem 9P
To determine
Under what circumstances might people appear to use rules of thumb, as suggested by the assumption of bounded rationality, even though they really are behaving in a manner suggested by the rationality assumption?
Concept Introduction:
Rationality assumption: The rationality is considered as the heart of the economics. It says that individuals choose the best decision for them with the available information.
Bounded rationality: The concept of bounded rationality says that people are mostly but not completely rational. Bounded rationality also assumes that people as rational but that is limited by the information they have and their ability to quickly process the available information
Rules of thumb: It is a key implication of bounded rationality because people cannot examine every possible choice in the economy so people can look forward to other alternatives.
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Chapter 1 Solutions
Economics Today: The Micro View (18th Edition)
Ch. 1.A - Prob. 1PCh. 1.A - Prob. 2PCh. 1.A - Prob. 3PCh. 1.A - Prob. 4PCh. 1.A - Prob. 5PCh. 1.A - Prob. 6PCh. 1.A - Prob. 7PCh. 1.A - Prob. 8PCh. 1 - Prob. 1.1LOCh. 1 - Prob. 1.2LO
Ch. 1 - Prob. 1.3LOCh. 1 - Prob. 1.4LOCh. 1 - Prob. 1.5LOCh. 1 - Prob. 1.1SCCh. 1 - Prob. 1.2SCCh. 1 - Prob. 1.3SCCh. 1 - Prob. 1.4SCCh. 1 - Prob. 1.5SCCh. 1 - Prob. 1CTQCh. 1 - Prob. 2CTQCh. 1 - Prob. 1FCTCh. 1 - Prob. 2FCTCh. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Prob. 7PCh. 1 - Prob. 8PCh. 1 - Prob. 9PCh. 1 - Prob. 10PCh. 1 - Prob. 11PCh. 1 - Prob. 12PCh. 1 - Prob. 13PCh. 1 - Prob. 14PCh. 1 - Prob. 15PCh. 1 - Prob. 16P
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