ECON 1050 Chapter 8: Chapter 8.docx

44 views1 pages

limekangaroo448

1 Dec 2014

School

Department

Course

Professor

For unlimited access to Textbook Notes, a Class+ subscription is required.

Document Summary

Budget line - marks the boundary between those combos of goods and services that a household can afford to buy and those that it cannot afford. Utility the benefit or satisfaction that a person gets from the consumption of goods and services. Total utility - the total benefit that a person gets from the consumption of all the different goods and services. Marginal utility the change in total utility resulting from a one-unit increase in the quantity of a good consumed. Positive marginal utility all the things people enjoy and want more of. Diminishing marginal utility the tendency for marginal utility to decrease as the consumption of a good increases. Consumer equilibrium a situation in which a consumer has allocated all of his or her available income in the way that maximizes his or her total utility, given the prices of goods and services.

Related Questions

budget line

marginal utility

complete property of preferences

market demand

consumption bundle

substitution effect

Giffen good

total effect

income effect

transitive property of preferences

indifference curves

utility

the marginal rate of substitution

utility function

1.	_____	The satisfaction or benefit that consumers receive from consuming goods or services.
2.	________________ _	A particular combination of specific quantities of goods or services
3.	________________ _	Consumers can rank all conceivable bundles of goods or services
4.	_____	If A is preferred to B, and B is preferred to C, then A is always preferred to C.
5.	_____	Equation showing a consumerâs perception of the total utility forthcoming from consuming each bundle of goods and services.
6.	_____	A set of consumption bundles each and every one of which provides a consumer with exactly the same level of total utility.
7.	_____	The number of units of Y that must be given up for total utility to remain the same when one more unit of X is consumed.
8.	_____	The addition to total utility attributable to consuming one more unit of a good, holding the consumption of all other goods constant.
9.	_____	The line showing all bundles of goods that can be purchased at given prices if the entire income is spent.
10.	_____	The change in the consumption of a good that would result if the consumer remained on the original indifference curve after the price of the good changes.
11.	_____	The change in consumption of goods results strictly from the change in purchasing power after the price of a good changes.
12.	________________ _	The sum of the substitution and income effects.
13.	_____	A good for which quantity demanded varies directly with price, causing an upward sloping demand curve.
14.	_____	A list of prices and the corresponding quantity consumers are willing and able to purchase at each price.

blushwildebeest943

In economics the term utility refers to

A. The subjective benefit or satisfaction a person expects to receive from a choice or course of action.

B. The number of possible uses for a resource.

C. The fact that human desire for goods is unlimited while the resources available to meet those desires are limited.

D. The highest valued alternative that must be sacrificed when a choice is made.

mauvemule811

1. Categories of goods

Complete the following table by selecting the appropriate definition for each of the given terms.

If a good is both excludable and nonrival in consumption, then it is __________.

Options for 1st blank:

A) Consumption of the good by one person decreases the ability of other people to consume the good.

B) Consumption of the good by one person does not decrease the ability of other people to consume the good.

C) It is not possible to prevent an individual from using the good.

D) The satisfaction derived from consuming the good is affected by the price a consumer pays for the good.

E) Those who are unwilling or unable to pay for the good do not obtain its benefits.

Options for 2nd blank:

A) Consumption of the good by one person decreases the ability of other people to consume the good.

B) Consumption of the good by one person does not decrease the ability of other people to consume the good.

C) It is not possible to prevent an individual from using the good.

D) The satisfaction derived from consuming the good is affected by the price a consumer pays for the good.

E) Those who are unwilling or unable to pay for the good do not obtain its benefits.

Options for 3rd blank:

A) a common resource

B) a club good

C) a private good

D) a public good

viridianjackal166

ECON 1050 Chapter 8: Chapter 8.docx

Document Summary

Get access

Related Documents

ECON 1050 Chapter Notes - Chapter 8: Bounded Rationality, Neuroeconomics, Marginal Utility

ECON 1050 Chapter Notes - Chapter 8: Behavioral Economics, Bounded Rationality, Economic Surplus

ECON 1050 Chapter 8: Chapter 8-utility and demand.docx

Related Questions