behavioural econ Flashcards
1
Q
definition of behavioural econ
A
study of the effects of psychological, social . cognitive and emotional notional factors on econ decision making
alternative to neoclassical econ
2
Q
definition of rational behaviour
A
ppl make decisions in their self intersect / maximise their private benefit in terms of welfare and utility
3
Q
definition of utility
A
measure if satisfaction ed get from purchasing a good/service
4
Q
marginal utility
A
is the change in satisfaction from given level of consumption
5
Q
calculation for marginal utility
A
change in total utility
——————————-
change in quantity
6
Q
what are constraints that restrict choices made by consumers
A
- limited income
- given set of prices
- budget control
- limited time available
