Chapter 5 Equations Flashcards by Nathan K | Brainscape

Q

What is the Utility Function?

A

U=U( X, Y)

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

If bundle A is preferred over bundle B, then?

A

U(bundle A) is greater than U(bundle B)

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The Marginal Utility of X is

A

MUx= Change in U over the change on X

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The Marginal Utility of Y is

A

MUy= Change in U over the change of Y

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The Slope of an Indifference curve is?

A

Δy/Δx=-(Mu_x)/(Mu_y )

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

The Marginal Rate of Substitution (MRS) is?

A

-Δy/Δx=(Mu_x)/(Mu_y )>0

How well did you know this?

1

Not at all

2

3

4

5

Perfectly