1st set of words. Flashcards
Satiate
satisfy
Util
a measure of utility
Monopsony
power of being the only buyer
Firm
business or organization
Monopoly
power of being the only seller
Risk perception
how our experiences impact how we value risk
Assumptions
an abstraction that simplifies a scenario
Unjust outcomes
unfair outcomes due to inequality of the implementation of rules
Strong assumptions
unrealistic assumptions (weak assumptions are more realistic); to relax assumptions we go from strong to weak assumptions
Consumption
the act of deriving utility
Marginal utility
additional increment of utility associated with consuming one more unit of a good or service
Margin
in a succession of units, the specific unit you are focusing on
Total utility
the total satisfaction derived from consuming a specific quantity of a good or service; the total of marginal utilities for all individual units consumed
Oligopoly
a market characterized by a small number of firms who realize they are interdependent in their pricing and output policies
Specialization
individuals dividing up labor within/across trades
Division of labor
increases productivity as individuals are better able to become more dexterous when they focus on one task
Supply
(S) the quantity supplied at certain prices; different than quantity
Demand
(D) attitude of those in the market buying
Elasticity
amount that demand responds to market conditions
Inelastic
insignificant change in demand regardless of market conditions
