What is most likely to be an irrational economic act?
An entrepreneur or consumer is acting irrationally if their action contradicts standard economic assumptions of utility or profit maximisation without a non-monetary benefit.
A consumer purchasing fewer units of a normal good when their real income decreases
A saver moving funds from a low-interest bank account to one offering a higher rate of interest
A firm reducing the price of a product with highly price inelastic demand in order to increase its total revenue
A firm engaging in price discrimination to increase its total profits
53 exam-style questions on OCR A Level Economics The economic problem. Each one has a worked solution and a mark scheme showing where the marks go.