FHCE 3150 Chapter Notes - Chapter 3: Marginal Utility, Utility, Composite Good
Get access
Related Documents
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
Ā
1. |
_____ |
The satisfaction or benefit that consumers receive from consuming goods or services. Ā Ā |
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 consumerĆ¢ĀĀs 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. |
1. In recent years China market reforms have turned toward:
Ā | A. | more free trade, allowing foreign-owned enterprises to import, export, and establish production in China. |
Ā | B. | establishing more urban collectives. |
Ā | C. | transforming state-owned enterprises into shareholder-owned corporations. |
Ā | D. | reestablishing central planning. |
2. In pure capitalism, the role of government is best described as:
Ā | A. | nonexistent |
Ā | B. | limited |
Ā | C. | significant |
Ā | D. | extensive |
3. In pre-reform Russia and pre-reform China:
Ā | A. | both consumer and capital goods outputs were determined by central planning. |
Ā | B. | both consumer and capital goods outputs were determined by the market. |
Ā | C. | capital goods output was determined by planning, but consumer goods output was determined by the market. |
Ā | D. | consumer goods output was determined by planning, but capital goods output was determined by the market. |
4. In college, you practically existed on Spam, but now that you have an $80,000 a year job,Ā you never want to see Spam again. We can safely conclude that you consider Spam to be
Ā |
Ā | A. | a normal good. |
Ā | B. | a complementary good. |
Ā | C. | an inferior good. |
Ā | D. | a luxury good. |
5. In a free market, the price system determines how society's output will be distributed by:
Ā | A. | ensuring that low-income people can buy all of the necessities for living. |
Ā | B. | providing goods for those willing and able to pay the equilibrium price. |
Ā | C. | ensuring that each commodity is produced by the most efficient technique. |
Ā | D. | allowing all those who desire a commodity to buy it. |
Ā