Utility maximisation
What Utility maximisation means in Economics A-Level, as defined for AQA.
Definitions of Utility maximisation
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Utility maximisation in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Consumers use marginal analysis, continuing an activity as long as the marginal benefit exceeds the marginal cost, to maximise utility.
What consumers attempt when they need information, though imperfect information may prevent them from achieving it.
The goal of rational economic decision making, where economic agents act to maximise their own utility or benefit.
The traditional assumption that individuals act purely out of self-interest to maximise personal utility.
The process where consumers allocate their income to achieve the highest possible total satisfaction.
Topics that use Utility maximisation
- Aspects of behavioural economic theory (AQA A-Level)
- Consumer behaviour (AQA A-Level)
- Imperfect information (AQA A-Level)
Related terms
- Rational decision making
- Rationality
- Anchoring
- Asymmetric information
- Availability bias
- Behavioural economics
- Bounded rationality
- Bounded self-control
Using Utility maximisation in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge