1
Q
Utility
A
the satisfaction received from consumption
2
Q
Total utility
A
the total satisfaction received from consumption
3
Q
Marginal utility
A
the utility derived from the consumption of one more unit of the good or service
4
Q
Diminishing marginal utility
A
the fall in marginal utility as consumption increases
5
Q
Equimarginal principle
A
consumers maximise their utility where their marginal valuation for each product consumed is the same, i.e. MUa/Pa = MUb/Pb = … = MUn/Pn.
A2 Economics
flashcards
Decks in class (20)
# Cards
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7.1 Utility5
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7.2 Indifference Curve and Budget Line8
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7.3 Efficiency and Market Failure4
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7.4 Private costs and benefits, externalities and social costs and benefits12
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7.5 Types of cost, revenue and profit, short-run and long-run production19
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7.6 Different market structures13
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7.7 Growth and Survival of firms5
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7.8 Differing objectives and policies of firms5
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8.1 Government policies to achieve efficient resource allocation and correct market failure6
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8.2 Equity and redistribution of income and wealth10
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8.3 Labour market forces and government intervention5
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9.1 The circular flow of income35
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9.2 Economic growth and sustainability8
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9.3 Employment_unemployment10
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9.4 Money and banking17
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10 Government macroeconomic intervention9
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11.1-2 Policies to correct BoP disequilibrum and Exchange rate7
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11.3 Economic Development6
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11.4 Characteristics of countries at different levels of Economic Development13
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11.5-6 Relationship btw countries at different levels of development and Globalisation14
