Bounded rationality suggests a. rational decisions can only be made when choices are restricted. b. individuals might make "incorrect" decisions because they are unable to consider all possible options. c. individuals are happier when their choices are restricted or "bounded." d. individuals would rather have less choice to more choice.

Option B

Bounded rationality suggests individuals might make "incorrect" decisions because they are unable to consider all possible options.

Explanation:

Bounded rationality is the view that we execute wise judgments but in the boundaries of the erudition open to us and our thought skills. Bounded rationality is the opinion that in judgment building, the rationality of somebody is restricted by the data they have, the cognitive boundaries of their thoughts, and the terminable quantity of time they have to get a judgment.  

Another means to see at bounded rationality is that, because decision-makers require the expertise and sources to reach the optimal explication, they rather employ their rationality barely later having considerably analyzed the possibilities available. Thus the decision-maker is a satisficer, one inquiring a gratifying solution preferably than the optimal thing.

as university of miami psychologists debra lieberman and adam smith pointed out in a recent article in the journal current directions in psychological science, humans have social and psychological mechanisms to deter incest. with very few exceptions, marriages between brothers and sisters and between parents and their children are verboten in every human culture. the primary psychological anti-incest mechanism is the yuck response. even the idea of sex with their mom or dad, bro or sis is upsetting to most people. the psychologist jonathan haidt has found that nearly everyone is repelled by the prospect of brother-sister sex, even in hypothetical situations in which there is no chance of pregnancy).

the biological cost of incest

this raises an interesting question: just what’s so bad about incest? sure, having sex with your dad or your sister seems gross — but why? some anthropologists have argued that incest taboos are learned social conventions. this explanation, however, doesn’t make sense to me as it does not explain the widespread existence of anti-incest mechanisms in creatures ranging from cockroaches to chimpanzees. second, the incest taboo is about as close to a universal law as human moral rules get.

why should mechanisms to avoid incest be so widespread both in nature and across human societies? the answer is simple. the problem with having sex close with relatives is that there is an astonishingly high chance that your offspring will be born with a serious birth defect.

"choosing is refusing" means individuals face an opportunity cost with each decision they make. economists state that every decision involves trade-offs. opportunity cost is the least desirable alternative given up as a result of a decision.