Economic Objectives Flashcards by Azizah Shaikh

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Definition

Economics agents have different economic objectives. As economists we assume that agents are rational (maximise economic welfare).

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Individuals/ consumers

Maximising their economic welfare from their limited income. Make decisions to get the utility (satisfaction) from limited resources.

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Workers

Objective is to maximise their gains from working:
1. Initial objective is to maximise income
2. However, other objectives may emerge e.g. work-life balance

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Firms

Maximising profits

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Government

Maximising interests of its citizens

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Economic Objectives Flashcards

(5 cards)