[ECON 102] - Midterm Exam Guide - Ultimate 15 pages long Study Guide!

• School: University of Illinois
• Department: Economics
• Course: ECON 102
• Professor: Isaac Dilianni--- Universityof Illinois

Document Summary

The theory of marginal utility (1870s) (carl menger): The marginal revolution: the discovery of the theory of marginal utility in the early 1870s. Chapter 1: the general theory of the good. A good is: a useful thing is subject to human control. The theory of derived demand: classicals thought that the value starts from the top of the structure whereas menger thought that it originates from the bottom. The price of the good is determined by how satisfied we are when we buy a good. The value of the car then determines the value of steel, and so on. Chapter 3: the theory of value: the theory of marginal utility: The marginal unit is: the next unit gained or given up. Marginal utility: the additional utility that a person gets from having one more unit of a good, or loses from having one less unit of a good.