AGEC 2003 : Exam1 Study Topics Q&A
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Exam 1- suggested topics of study q&a9/18/2012 11:54:00 pm. Nature and mankind do not provide for unlimited amounts of any resource, good, or service. People generally do not have enough money to satisfy all of the wants or needs. List and be able to discuss two characteristics that economists assume about consumers and their consumption habits: 1. Consumers spend everything they earn on goods and services, including savings: 2. Consumers never get enough of most things (goods). More is preferred to less: consumers do not purchase infinite quantities of goods because they don"t have enough money scarcity! Define utility: the satisfaction a consumer gets from consuming a particular good or service. Be able to draw total utility and marginal utility curves. Define indifference curve: shows all the combinations of goods that yield an individual the same amount of satisfaction or utility. Be able to plot an indifference curve, with or without numbers being provided.
