Economics AQA A Level Year 2 Micro
- Unit 1 Behavioural Economics
Rational Behaviour - Answer>> acting in pursuit of of self-
interest, which for a consumer means attempting to maximise the
welfare, satisfaction or utility gained from the goods and services
consumed
Utility - Answer>> the satisfaction or economic welfare an
individual gains from consuming a good or service
Marginal Utility - Answer>> the amount of satisfaction an
individual derives from consuming an extra unit of a good or
service
Diminishing Marginal Utility - Answer>> for a single consumer
the marginal utility derived from a good or service diminishes for
each additional unit consumed
Asymmetric Information - Answer>> when one party to a market
transaction possesses less information relevant to the exchange
than the other
Information Failure - Answer>> occurs when people have
inaccurate or incomplete data and so make potentially 'wrong'
decisions/choices
Behavioural Economics - Answer>> a method of economic
analysis that applies psychological insights into human behaviour
to explain how individuals make choices and decisions
Bounded Rationality - Answer>> when making decisions, an
individuals rationality is limited by the information they have, the
- Unit 1 Behavioural Economics
Rational Behaviour - Answer>> acting in pursuit of of self-
interest, which for a consumer means attempting to maximise the
welfare, satisfaction or utility gained from the goods and services
consumed
Utility - Answer>> the satisfaction or economic welfare an
individual gains from consuming a good or service
Marginal Utility - Answer>> the amount of satisfaction an
individual derives from consuming an extra unit of a good or
service
Diminishing Marginal Utility - Answer>> for a single consumer
the marginal utility derived from a good or service diminishes for
each additional unit consumed
Asymmetric Information - Answer>> when one party to a market
transaction possesses less information relevant to the exchange
than the other
Information Failure - Answer>> occurs when people have
inaccurate or incomplete data and so make potentially 'wrong'
decisions/choices
Behavioural Economics - Answer>> a method of economic
analysis that applies psychological insights into human behaviour
to explain how individuals make choices and decisions
Bounded Rationality - Answer>> when making decisions, an
individuals rationality is limited by the information they have, the
