Rational decision making

Question 1

Econ welfare

Answer 1

lvl of well being /prosperity / LS

Question 2

Econ agents

Answer 2

make decisions in rational ways & assume decisions taken at margin
• 3 econ agents
- C
- P
- Gov

Question 3

C

Answer 3

• Max econ welfare
- have to use limited income to make right choice g/s to max utility

Question 4

P

Answer 4

Max rewards from ownership … max profit

Question 5

Gov

Answer 5

• Max Citizens welfare
- take decisions … Increase welfare for country as a whole