Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
Consumption Bundle
|
The set of all the goods and services an individual consumes
|
|
Utility
|
Measure of satisfaction of the consumer derives from the consumption of goods and services
|
|
Utility Function
|
The relationship between an individuals consumption bundle and total amount of utility it generates for that individual
|
|
Marginal Utility
|
The change in total utility from consuming an additional unit
|
|
Marginal Utility curve
|
Shows how marginal utility depends on the quantity of a good or service consumed
|
|
Budget constraint
|
The cost of a consumers consumption bundle is no more than the consumers total income
|
|
Marginal Utility Curve
|
Shows how marginal utility depends on the quantity of a good or service consumed
|
|
Principle of diminishing utility
|
Each successive unit of a good or service consumed adds less to that total utility than the previous unit
|
|
Budget Line
|
Line that shows the consumption bundles available to a consumer who spends all of his/her income
|
|
Consumption Possibilities
|
The set of all consumption bundles that he/she can consume given the condumers income and prevailing prices
|