Final answer:
Path dependence is the term that describes how current options are limited by decisions made in the past, with choices being influenced by the historical path taken.
Step-by-step explanation:
The term that describes a process in which the options one faces in a current situation are limited by decisions made in the past is Path dependence. Path dependence suggests that certain choices, processes, or outcomes are made possible or constrained because of the historical path taken. This concept implies that current and future possibilities are shaped by the sequence of events or decisions that preceded them, even if those past choices no longer seem to be the most efficient or relevant for the current context. For example, the QWERTY keyboard layout, originally designed to prevent jamming in typewriters, is still widely used despite there being more efficient layouts available, demonstrating a strong case of path dependence.