Theory Of Individual Behaviour Flashcards

1
Q

An individual who purchases goods and services from firms for consumption

A

Consumer

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2
Q

This represents the possible goods and services a consumer can afford to consume

A

Consuemr opportunity

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3
Q

This determines which goods will be consumed

A

Consumer preference

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4
Q

What are the properties of indifference curve

A
  • Completeness
  • More is better (non-satiability)
  • Diminishing marginal rate (Convexity)
  • Transivity
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