Micro ~ Module 4: Individual Economic Decision Making Flashcards

1
Q

Define utility

A

A measurement of overall satisfaction or wellbeing

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2
Q

Define marginal utility

A

The utility received from purchasing an extra unit of a good

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3
Q

Define the laws of diminishing marginal returns

A

The marginal utility received decreases as a consumer buys more units

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4
Q

Define imperfect information

A

Where economic agents are not able to access all of the relevant information about a market

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5
Q

Define asymmetric information

A

Where the buyers and sellers in a market have access to different amounts of market information

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