Economic theory suggests that consumers, workers, businesses and governments are ...and behave in ... ways
Rational
1 of 5
It is assumed that ... seek to maximise utility (getting the best combination of goods from their income)
Consumers
2 of 5
... behaviour would see decisions being made with logic and based on assessed information about benefits of goods and services
Rational
3 of 5
However, choices are sometimes based on ... This means that we may not always be rational consumers as we make decisions in a rush rather than weighing up the benefits and welfare gained
Habit
4 of 5
... gaps or ... failure is used by firms with consumers because the consumers don't always spend the time to gather all the ... and make calculations and firms exploit this irrational behaviour and create confusing offers
Information
5 of 5
Other cards in this set
Card 2
Front
It is assumed that ... seek to maximise utility (getting the best combination of goods from their income)
Back
Consumers
Card 3
Front
... behaviour would see decisions being made with logic and based on assessed information about benefits of goods and services
Back
Card 4
Front
However, choices are sometimes based on ... This means that we may not always be rational consumers as we make decisions in a rush rather than weighing up the benefits and welfare gained
Back
Card 5
Front
... gaps or ... failure is used by firms with consumers because the consumers don't always spend the time to gather all the ... and make calculations and firms exploit this irrational behaviour and create confusing offers
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