In macroeconomic analysis, the representative consumer
A) denotes the consumer with the average amount of income.
B) plays the role of a stand-in for all consumers in the economy.
C) is the consumer who bargains with firms for all workers in the economy.
D) is always a misleading fiction.
E) is the consumer with an average standard of living.

Question

Quizplus · Accepted Answer

The representative consumer is a theoretical construct used by economists to simplify the analysis of consumer behavior in the economy. This representative consumer is not a real person but represents the average preferences, income, and behavior of all consumers in the economy.

In Macroeconomic Analysis, the Representative Consumer