Work sheet on rational decision making

Exercise 1:

Exercise 2:

Exercise 3:

Exercise 4:

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Exercise 5:

Exercise 6:
Traditional economic theory has the key assumptions that economic agents are
A Altruistic
B Boundedly rational
C Satisficers
D Rational utility maximisers

Exercise 7:
What name is sometimes used to refer to a rational economic agent?
A Ceteris paribus
B Homo economicus
C Adam Smith-ite
D Homo sapien

Exercise 8:

2
Exercise 9:

Exercise 10:
In Canada, two of the largest internet providers, Bell and Rogers, increased prices in 2018. Consumers could
save 25% by switching to smaller internet providers. However, most consumers remained with their more
expensive internet providers.
Explain one reason why many consumers behave in this way and remain with their current internet providers.

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(Total marks for question 10 = 4 marks)