The Economic Model of Consumer Behavior Predicts That

question 260

Multiple Choice

The economic model of consumer behavior predicts that

• A)consumers will try to earn as much income as they can over their lifetimes.
• B)consumers will choose to buy the combination of goods and services that make them as well off as possible from those combinations that their budgets allow them to buy.
• C)consumers will try to accumulate as many goods and services as they can before they die.
• D)consumers divide their time between consumption and leisure activities in order to maximize social welfare.

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Definitions:

Cognitive Psychologist

A professional who studies mental processes such as perception, thought, memory, and reasoning, to understand how people process and store information.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method or decision.

Betrayed

The feeling or state of being deceived, let down, or violated trust by someone previously considered a confidant or ally.

Prototype

An original model or form of something that serves as a typical example or basis for making subsequent versions or for categorization.