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11 Cards in this Set

  • Front
  • Back
a measure of the satisfaction received from possessing or consumin goods and services
Diminishing Marginal Utility
the principle that the more of a good that one obtains in a specific period of time, the less is the additional utility yeilded by an additional unit of that good
Marginal Utility
the extra utility derived from consuming one more unit of a good or service
total utility
a measure of the total satisfaction derived from consuming a quantityof some good or service
equimarginal principle or consumer equilibrium
to mazimize utility, consumers must allocate their scarce incomes among goods so as to equate the marginal utilities per dollar of expenditure on the last unit of each good purchased
cunsumer surplus
the difference between what the consumer is willing and able to pay for a unit of a good and the price that the consumer actually has to pay
lacking any preference
indifference curve
a curve showing all combinations of two goods that the consumer is indifferent among
indifference map
a complete set of indifference curves
budget line
a line showing all the combinations of goods that can be purchased with a given level of income