a) Rational decision making

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6 Terms

1
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  • economic agents are assumed to make decisions…


  • rationally


2
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  • rational decision


  • a decision made depending on the net benefits of each option


3
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  • consumers make rational decisions by…


  • attempting to maximise the utility from their choices


4
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  • utility


  • the satisfaction gained from the consumption of a good/service


5
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  • firms make rational decisions by..


  • attempting to maximise the profit from their choices


6
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  • governments make rational decisions by…


  • attempting to serve the people to maximise their welfare