Micro - Key Words

Question 1

Total utility

Answer 1

Total satisfaction from a given level of consumption

Question 2

Marginal utility

Answer 2

Change in satisfaction from consuming an extra unit

Question 3

Demand

Answer 3

Amount that consumers are willing and able to buy at each give price point

Question 4

Competitive market

Answer 4

A market in which a large number of buyers and sellers possess good information and can easily enter and leave the market

Question 5

Market

Answer 5

Voluntary meeting of buyers and sellers - both must be willing partners in exchange

Question 6

Equilibrium price

Answer 6

Price at which planned demand for a good exactly equals planned supply

Question 7

Market demand

Answer 7

Sun of all the individual demands from consumers in a market

Question 8

Inferior goods

Answer 8

Goods which demand goes down as income goes up

Question 9

Normal goods

Answer 9

Goods which demand increases as income goes up

Question 10

Opportunity cost

Answer 10

Loss of other alternatives when one alternative is chosen