The concept of 'Bounded Rationality' associated with Herbert Simon implies that: MCQ with Answer and Explanation

The concept of 'Bounded Rationality' associated with Herbert Simon implies that:
A. Only perfect information is assumed
B. Individuals always optimise with unlimited computational power
C. Rationality is unbounded
D. Individuals are limited in their cognitive capacity and information and therefore satisfice rather than optimise
Answer: Option D
Solution (By JKSSB Mock Tests)
Bounded rationality recognises that human decision-makers face cognitive limitations and incomplete information, so they typically seek satisfactory rather than optimal solutions.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a characteristic of 'Dark Patterns' in digital interfaces?
A. User-interface designs that manipulate or coerce users into choices they would not otherwise make
B. User interfaces that maximise clarity and user autonomy
C. Only aesthetically pleasing designs
D. Only accessible designs for disabled users

Correct Answer: Option A


Explanation:
Dark patterns are deceptive or manipulative interface designs that steer users toward decisions—such as subscribing, sharing data or making purchases—that benefit the platform at the expense of the user’s true preferences.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'National Family Health Survey' is conducted under the stewardship of:
A. Ministry of Health and Family Welfare
B. Ministry of Finance
C. RBI
D. NITI Aayog

Correct Answer: Option A


Explanation:
NFHS is conducted under the Ministry of Health and Family Welfare.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' rate on cinema tickets above Rs 100 is:
A. 12%
B. 28%
C. 5%
D. 18%

Correct Answer: Option D


Explanation:
Cinema tickets above Rs 100 attract 18% GST.

This question belongs to: Economy GK Economy Set 1