Consumer Theories in Economics: Decision Making, Incentives & Preferences

Instructions:

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question 1 of 3

What can economists assume about consumers?

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1. Which of the following is an example of a preference?

2. Define optimization.

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About This Quiz & Worksheet

Understanding consumer behavior is central to an economist's job, and this quiz and worksheet cover some basic terms and principles that economists utilize in analyzing consumers. Some of the information you'll be quizzed on includes what economists cannot assume about consumer behavior and which resources are limited for consumers.

Quiz & Worksheet Goals

These assessment tools will test you on the following terms:

  • Optimization
  • Preference
  • Incentive

Skills Practiced

  • Making connections - use understanding of the concept of optimization in the context of economics
  • Defining key concepts - ensure that you can accurately define main terms, such as preference and incentive
  • Knowledge application - use your knowledge to answer questions about consumer behaviors

Additional Learning

For more information, review the related lesson, Consumer Theories in Economics: Decision Making, Incentives, & Preferences. The following are some suggested objectives:

  • Understand the importance of evaluating consumer behavior to economists
  • Define utility
  • Identify base assumptions that economists make about consumers
  • Learn how producers may try to influence consumer behavior
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