Economic Objectives Flashcards
(5 cards)
Definition
Economics agents have different economic objectives. As economists we assume that agents are rational (maximise economic welfare).
Individuals/ consumers
Maximising their economic welfare from their limited income. Make decisions to get the utility (satisfaction) from limited resources.
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
Firms
Maximising profits
Government
Maximising interests of its citizens