Search results
Unit 2: Consumer Theory. The second unit of the course introduces you to the analysis of consumer behavior. The decisions that individuals make about what and how much to consume are among the most important factors that shape the evolution of the overall economy, and we can analyze these decisions in terms of their underlying preferences. You ...
- Budget Constraints
This section provides a lesson on budget constraints. The...
- Budget Constraints
- Measuring Economic Wellbeing
- What Does The Subjective Happiness Indicators suggest?
- What Is The Easterlin Paradox?
Economic wellbeing is a broader measure of our welfare than simply GDP or GNI per capita. The UK has joined a growing number of countries in looking at how traditional measures of progress such as GDP can be complemented by subjective measures to assess how people feel about their lives. Some of the notable wellbeing indicators are shown and they r...
Personal well-being surveys ask people to evaluate, on a scale of 0 to 10, how satisfied they are with their life overall, whether they feel they have meaning and purpose in their life, and about their emotions (happiness and anxiety) There has been a rise in reported high life satisfaction and happiness although that figure dipped in 2019. We shou...
The Easterlin Paradoxconcerns whether we are happier and more contented as our real living standards improve Within a society, richer people tend to be happier than poor people. Richard Easterlin argued that life satisfaction does rise with average incomes but only up to a point. Beyond that the marginal gain in happiness declines (there are dimini...
Sep 5, 2022 · Expectations are essential for understanding the economic choices of individuals as well as cyclical developments in an economy over time. The initial theory of how people form their expectations was first introduced by Aristotle more than two millennia ago.
Definition. The recognition lag is the time it takes policymakers to recognize that an economic problem has arisen and that action is required to address it. This delay can hinder the effectiveness of discretionary fiscal policy, as the problem may have already changed or worsened by the time the policy response is implemented.
Definition. Problem recognition is the initial stage in the consumer decision-making process where an individual identifies a discrepancy between their current state and a desired state, prompting the need for a solution.
Feb 10, 2017 · Introduction. Preferences are at the core of economics. Economists claim it to be part of their success in truthfully predicting and explaining (aspects of) economic phenomena (positive economics) and analyzing the desirability of specific policies and institutions (normative economics).
May 24, 2014 · In economics expectations are defined as forecasts of future events, which influence decision-making. The first known mention of economic expectations was recorded in Ancient Greece.
