• Behavioral economists believe that individuals do not always behave as if they are rational, and this belief is known as the a. bounded rationality assumption.

Bounded rationality assumption refers to a concept which argues that people make decisions that they believe are rational based on the information they have and their mental capacity. The main idea of this concept is that people have limited rationality in their decision making. It also argues that humans always make a decision that satisfies their needs and wants without putting much consideration on the other available options. Thus, based on this concept, it is correct when one argues that humans are sometimes rational, but not always.