Economic Assumptions Quiz

What do economists assume about consumer behavior?

• Consumers do not consider their budget

• Consumers always behave irrationally

• Consumers always behave based on clear thought

• Consumers are influenced solely by advertising

What is the primary goal of consumers according to economic assumptions?

• To support local businesses

• To maximize their benefit

• To minimize their spending

• To follow trends

If a consumer has a budget of 500 dhs, what is a rational behavior?

• Buying the most expensive item

• Buying randomly

• Ignoring the budget

• Buying items based on preference

What do businesses aim to maximize according to economic assumptions?

• Employee happiness

• Profit

• Market share

• Customer satisfaction

When setting prices, what do businesses typically do?

• Charge the lowest price possible

• Charge the highest price the market can bear

• Charge based on competitor prices only

• Charge a random price

What is a reason consumers may not maximize their benefit?

• They always have complete information

• They develop brand loyalty

• They prefer to buy the cheapest item

• They are always rational

What can influence a consumer's buying behavior?

• Economic conditions

• Brand history

• Peer pressure

• Only personal preferences

Why might businesses not always act rationally?

• They have other objectives

• They only focus on profit

• They ignore market trends

• They always follow consumer preferences

What is one challenge consumers face in maximizing their benefits?

• They have too much information

• They can easily measure satisfaction

• They may lack access to information

• They always know the best prices

What is an example of a social enterprise?

• A local grocery store

• A firm which aim to maximize improvements in human and environmental well being

• A firm which aim to maximize their own benefits

• A company that only focuses on profit