Workbook16

Question 1

Marginal Utility

Answer 1

(MU, TU’) The change in total utility caused by the consumption of one additional unit; the slope of TU. (See total utility)

Question 2

Marginalists

Answer 2

(Marginal utility school) Led by Leon Walras, William Stanley Jevons, and Carl Menger, these economists resolved Adam Smith’s water-diamond paradox by examining the relationship between incremental desirability and price. (See not on Intellectual Heritage, No3 and water-diamond paradox)

Question 3

Marginality

Answer 3

The concept of slope or differential calculus; also called the marginal function, the first derivative, y prime, (y’), the rise over the run, et. al.

Question 4

Market

Answer 4

All the potential buyers and sellers of a particular good or service. (See market price)

Question 5

Market Oriented Industry

Answer 5

A business that locates near the customer to beat the competition, to avoid trade restrictions, or to reduce distribution cost. (See location theory and weight-adding industry)

Question 6

Market Price

Answer 6

The competitively arrived at price of one good, in one place, at one time.

Question 7

Marshallian Economists

Answer 7

The neo-classical economists who developed the models and theories of modern market economics.

Question 8

Marxism

Answer 8

A system that distributes wealth according to need. (See distribution theory)