individual economic decision making defintions Flashcards
consumer behaviour, imperfect information,aspects of behavioural economic theory, behavioural economics and economic policy
1
Q
A
2
Q
utility
A
The amount of satisfaction or benefit that a consumer gains from consuming a good or service
3
Q
utility maximisation
A
the concept that individuals or organisations seek to attain the highest level of satisfaction from their economic decisions
4
Q
rational consumer
A
consumer who carefully considers the costs and benefits of different choices and make decision to maximise their utility slash satisfaction may weigh out factors such as price quality and personal preferences.
5
Q
diminishing marginal utility
A
as you consume more of a good or service the additional satisfaction or utility you derive from each additional unit decreases
