The Economic Model of Consumer Behaviour Predicts That

question 171

Multiple Choice

The economic model of consumer behaviour 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 will divide their time between consumption and leisure activities in order to maximise social welfare.

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Definitions:

Pumpkins

Large, round, orange-yellow fruits from the squash family, commonly carved as jack-o'-lanterns for Halloween or used in pies.

Underage Smokers

Individuals below the legal age who engage in smoking tobacco products.

Adult Smokers

Individuals over the legal adult age who consume tobacco products through the act of smoking.

Elastic

A term used in economics to describe a situation where the demand for a good or service greatly changes in response to a change in price.