Chapter 3 Flashcards
1
Q
Ordinal ranking
A
Preference of in basket to another without quantitative info on intensity
2
Q
Cardinal ranking
A
Preference of one basket over another with quantitative info on intensity
3
Q
Utility function
A
A function that measures the level of satisfaction received from a basket of goods
4
Q
Marginal utility
A
The rate at with total utility changes with consumption
5
Q
Marginal rate of substitution
A
The rate a consumer is willing to give up one good to get more of another, utility is constant
