Question 1

Rational producer behaviour assumes that firms:

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Question 2

A nudge in behavioural economics is:

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Question 3

A nudge in behavioural economics is:

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Question 4

Define variable costs.

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Question 5

Rational producer behaviour assumes that firms:

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Question 6

Define fixed costs and give one example.

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Question 7

An example of a default nudge is:

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Question 8

Rational consumer behaviour assumes that consumers:

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Question 9

An example of a default nudge is:

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Question 10

Define fixed costs and give one example.

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Question 11

Define variable costs.

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Question 12

Rational consumer behaviour assumes that consumers:

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Question 13

Define profit and distinguish between normal profit and abnormal profit.

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Question 14

Explain one reason why firms might not always maximise profit in practice.

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Question 15

Explain the concept of rational producer behaviour.

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Question 16

Explain how advertising can weaken the assumption of rational decision-making.

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Question 17

Table 1 shows total cost at two output levels. Calculate the marginal cost of increasing output from 100 units to 120 units.

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Question 18

Explain the concept of diminishing marginal utility and how it relates to the demand curve.

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Question 19

Explain one internal economy of scale.

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Question 20

Distinguish between maximising behaviour and satisficing behaviour.

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Topic 2.4: Critique of the Maximizing Behaviour of Consumers and Producers Questions

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