Economic Objectives Flashcards
(5 cards)
1
Q
Definition
A
Economics agents have different economic objectives. As economists we assume that agents are rational (maximise economic welfare).
2
Q
Individuals/ consumers
A
Maximising their economic welfare from their limited income. Make decisions to get the utility (satisfaction) from limited resources.
3
Q
Workers
A
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
4
Q
Firms
A
Maximising profits
5
Q
Government
A
Maximising interests of its citizens
