Chapter 5 Flashcards
A particular combination of specific quantities of goods or services is a?
Consumption Bundle
When consumers are able to rank all conceivable bundles of commodities it is called?
Complete
This represents all the combinations of goods and services that a consumer may purchase within their given income?
Budget Line
When A>B and B>C, then A>C this is called?
Transitive
Benefits consumers obtain from the goods and services they consume, are called what?
Utility
A particular combination of specific quantities and of goods or services is called?
Consumption Bundle
The utility-maximizing bundle lies at one of the endpoints of the budget line and the consumer chooses to consume zero units of a good is called?
Corner Solution
A good for which the demand curve is upward sloping. is called?
Giffen Good
The change in the consumption of a good resulting strictly from a change in purchasing power after the price of a good changes is the?
Income Effect
A set of points representing different bundles of goods and services, each of which yields the same level of total utility is called an?
Indifference Curve
A measure of the number of units of Y that must be given up per unit of X added so as to maintain a constant level of utility is called?
Marginal Rate of Substitution
The addition to total utility that is attributable to the addition of one unit of a good to the current rate of consumption, holding constant the amounts of all other goods consumed is called what?
Marginal Utility
A list of prices and the quantities consumers are willing and able to purchase at each price in the list, other things being held constant is called what?
Market Demand
The change in the consumption of a good that would result if the consumer remained on the same indifference curve after the price of the changes is called what?
Substitution Effect
The sum of the substitution and income effect is called what?
Total Effect
