What Does the Economic Model of Consumer Behaviour Predict

question 120

Multiple Choice

What does the economic model of consumer behaviour predict?

• A)That consumers will try to earn as much income as they can over their lifetimes.
• B)That 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)That consumers will try to accumulate as many goods and services as they can before they die.
• D)That consumers will divide their time between consumption and leisure activities in order to maximise social welfare.

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Definitions:

Population Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values in a population.

Estimator

A rule or formula that provides an estimate of a population parameter based on sample data.

True Value

True value refers to the actual value of a parameter or statistic in the population, which statistical estimates aim to approximate.

Confidence Interval

A range derived from sample statistics that likely contains the true population parameter at a specified level of confidence.