1.2 Econ.assumption

Question 1

irrational

Answer 1

not based on clear thought of proof​

Question 2

assumptions

Answer 2

• things you think are true although you have no definite proof​

Question 3

rational

Answer 3

– based on clear thought and reason​

Question 4

maximise

Answer 4

– to increase something such as profit as much as possible​

Question 5

revenue

Answer 5

– Money made from sales​

Question 6

profit

Answer 6

– money left over once all costs have been paid​

Question 7

Assumption

Answer 7

Consumers aim to maximise their benefits​
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Question 8

In what situation might this assumption be wrong?​

Answer 8

Consumers are not always good at calculating the benefits of alternative options​
Consumers have habits that are hard to give up; taking the deal they have always done (not switching contracts, eating unhealthy food)​
Consumers sometimes copy other’s behaviour​

Question 9

Assumption – businesses aim to maximise their profit​
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Answer 9

Charities​
Caring for customers or high quality product repeat business​
Revenue maximise,to increase market share​,
Sales maximise