A recent labour market study reports that 74% of young professionals in the technology sector are willing to accept a lower base salary in exchange for flexible working hours and remote options.
According to traditional economic theory, which of the following describes the key underlying assumptions regarding the rational decision-making objectives of consumers, workers, and governments?
Consumers aim to maximise utility, workers aim to maximise their overall welfare, and governments aim to maximise social welfare.
Consumers aim to minimise total expenditure, workers aim to maximise wage rates, and governments aim to maximise tax revenue.
Consumers aim to maximise utility, workers aim to minimise work hours, and governments aim to maximise gross domestic product (GDP).
Consumers aim to maximise marginal utility, workers aim to maximise leisure time, and governments aim to minimise public sector net borrowing.
6 exam-style questions on Edexcel A A Level Economics 1.2.1 Rational decision making. Each one has a worked solution and a mark scheme showing where the marks go.