Economics A-Level
Rationality
What Rationality means in Economics A-Level, as defined for AQA.
Definitions of Rationality
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Reference: AQA
The idea that economic agents make decisions by weighing the additional benefits against the additional costs of consuming or producing one extra unit.
Decision-making that assumes economic agents have access to perfect information and maximise their respective objectives.
Topics that use Rationality
- Consumer behaviour (AQA A-Level)
- Imperfect information (AQA A-Level)
Related terms
- Rational decision making
- Utility maximisation
- Asymmetric information
- Decision making
- Economic incentives
- Hypothesis of diminishing marginal utility
- Moral hazard
- Law of diminishing marginal utility
Using Rationality in the exam
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