Micro ~ Module 4: Individual Economic Decision Making Flashcards
1
Q
Define utility
A
A measurement of overall satisfaction or wellbeing
2
Q
Define marginal utility
A
The utility received from purchasing an extra unit of a good
3
Q
Define the laws of diminishing marginal returns
A
The marginal utility received decreases as a consumer buys more units
4
Q
Define imperfect information
A
Where economic agents are not able to access all of the relevant information about a market
5
Q
Define asymmetric information
A
Where the buyers and sellers in a market have access to different amounts of market information
