Bounded Self Control

Question 1

Bounded rationality refers to our ________ mental processing abilities when making _________

Answer 1

Bounded rationality refers to our limited mental processing abilities when making decisions.

Question 2

What can bounded self control lead to

I________ decisions

Answer 2

Irrational decisions

Question 3

Bounded __________ - limited mental processing when making decisions

2. Bounded self- _________ - our limited ability to control ourselves

Answer 3

Bounded rationality - limited mental processing when making decisions

Bounded self-control - our limited ability to control ourselves

Question 4

Which of the following does the concept of bounded self-control refer to?

A consumer’s ability to control themselves to make utility maximising decisions

The ability to eat lots of chocolate

A consumer’s limited mental processing ability

A consumer’s limited ability to control their own decisions

Answer 4

A consumer’s limited ability to control their own decisions

Question 5

Which of the following might be an example of bounded self-control?

A high marginal propensity to consume

A high level of income

A low savings ratio

A lack of mental capacity to make rational decisions

Answer 5

A low savings ratio

Question 6

Which of the following is not used to explain irrational behaviour?

Limited self-control

Altruistic behaviour

Unbounded self-control

Bounded rationality

Answer 6

Unbounded self-control