Chapter 6 - Rational Decision Making Flashcards
1
Q
Define - “Behavioural Economics”
A
A branch of economics that accepts that consumers and other economic agents do not always act rationally and looks at why this might happen
2
Q
Define - “Default”
A
To fail to pay money that you owe at the right time.
3
Q
Define - “Utility”
A
The satisfaction or benefit derived from consuming a good or a set of goods
4
Q
Define - “Economic Welfare”
A
The level of well-being or prosperity or living standards of an individual or group of individuals such as a country.
