exam 1- vocab | ECO 420K - MICROECONOMIC THEORY-HONORS, Quizzes of Microeconomics

Class: ECO 420K - MICROECONOMIC THEORY-HONORS; Subject: Economics; University: University of Texas - Austin; Term: Fall 2011;

Typology: Quizzes

2010/2011

Uploaded on 09/27/2011

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TERM 1
budget constraint equation
DEFINITION 1
p1x1+ p2x2=m
TERM 2
optimal consumption means
DEFINITION 2
the finding of x1 and x2
TERM 3
marginal
utility
DEFINITION 3
find derivative, how much satisfaction i guet from consuming
goods and services.
TERM 4
budget constraints
DEFINITION 4
represent the combination of goods and services that a
consumer can purchase given current prices with his or her
income
TERM 5
normal good
DEFINITION 5
In economics, normal goods are any goods for which demand
increases when income increases and falls when income
decreases but price remains constant, i.e.
pf2

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TERM 1

budget constraint equation

DEFINITION 1

p1x1+ p2x2=m

TERM 2

optimal consumption means

DEFINITION 2

the finding of x1 and x

TERM 3

marginal

utility

DEFINITION 3

find derivative, how much satisfaction i guet from consuming

goods and services.

TERM 4

budget constraints

DEFINITION 4

represent the combination of goods and services that a

consumer can purchase given current prices with his or her

income

TERM 5

normal good

DEFINITION 5

In economics, normal goods are any goods for which demand

increases when income increases and falls when income

decreases but price remains constant, i.e.

TERM 6

MRS

DEFINITION 6

x1/x

TERM 7

gross substitute

DEFINITION 7

if its greater then zero

TERM 8

gross

complement

DEFINITION 8

if its less then zero