5db629f77a8","title":"1.2.10 Alternative views of consumer behaviour Flashcards","topicId":"3f58e2f5-8bf2-563b-826f-ebacc58d9ce0","topicSlug":"alternative-views-of-consumer-behaviour","cards":[{"id":"9fe8c9f1-4c1d-4af2-a0cc-78c493ef9baa","cardType":"cloze","front":"The rational consumer model assumes people weigh up all options to maximise [ ].","back":"The rational consumer model assumes people weigh up all options to maximise utility.","points":null,"mcqOptions":[{"text":"utility","correct":true,"explanation":"Utility is the satisfaction or benefit consumers receive from using a good or service. The rational consumer model assumes they compare available choices and select the combination that maximises this outcome."},{"text":"profit","correct":false,"explanation":"Profit is the financial gain left after a firm subtracts its costs from revenue, so it describes producer behaviour. The rational consumer model instead assumes consumers choose options that maximise utility."},{"text":"revenue","correct":false,"explanation":"Revenue is the income a firm receives from selling goods or services, making it a business concept rather than a consumer objective. Consumers are assumed to maximise utility when choosing."},{"text":"income","correct":false,"explanation":"Income is money received by a consumer or firm, and it constrains purchasing decisions rather than representing the goal of consumption. The model assumes consumers aim to maximise utility."}]},{"id":"14306e5a-a725-41ea-b315-c511f12044e0","cardType":"cloze","front":"Utility is the [ ] gained from consuming a good or service.","back":"Utility is the satisfaction or benefit gained from consuming a good or service.","points":null,"mcqOptions":[{"text":"satisfaction or benefit","correct":true,"explanation":"Utility measures the satisfaction or benefit gained when a consumer uses a good or service. It explains why consumers may value different products differently and helps model their purchasing choices."},{"text":"cost or sacrifice","correct":false,"explanation":"Cost or sacrifice describes what a consumer gives up to obtain a product, such as money or another opportunity. Utility is the satisfaction or benefit gained from consumption, not its opportunity cost."},{"text":"price or expenditure","correct":false,"explanation":"Price or expenditure measures the money required to buy a product, not the consumer’s resulting experience. Utility is the satisfaction or benefit gained after consuming the good or service."},{"text":"production or output","correct":false,"explanation":"Production or output refers to the quantity of goods and services made by firms, so it concerns supply rather than consumer welfare. Utility means the satisfaction or benefit gained from consumption."}]}]}],"examCountdown":{"examDate":"2027-05-10","paperLabel":"Paper 1"},"heading":"1.2.10 Alternative views of consumer behaviour","title":"1.2.10 Alternative views of consumer behaviour Flashcards","topbar":{"backHref":"/a-level/economics/edexcel/a/flashcards"},"topicSidebar":"$L33"}]}],"topicId":"3f58e2f5-8bf2-563b-826f-ebacc58d9ce0","walled":"$L34"}],"$L35","$L36"]