- 6.1: Jeremy is deeply in love with Jasmine. Jasmine lives where cell pho...
- 6.2: Take Jeremys total utility information in Exercise 6.1, and use the...
- 6.3: Explain all the reasons why a decrease in a product's price would l...
- 6.4: As a college student you work at a part-time job, but your parents ...
- 6.5: Who determines how much utility an individual will receive from con...
- 6.6: Would you expect total utility to rise or fall with additional cons...
- 6.7: Would you expect marginal utility to rise or fall with additional c...
- 6.8: Is it possible for total utility to increase while marginal utility...
- 6.9: If people do not have a complete mental picture of total utility fo...
- 6.10: What is the rule relating the ratio of marginal utility to prices o...
- 6.11: As a general rule, is it safe to assume that a change in the price ...
- 6.12: Why does a change in income cause a parallel shift in the budget co...
- 6.13: Think back to a purchase that you made recently. How would you desc...
- 6.14: The rules of politics are not always the same as the rules of econo...
- 6.15: Income effects depend on the income elasticity of demand for each g...
- 6.16: Praxilla, who lived in ancient Greece, derives utility from reading...
- 6.17: If a 10% decrease in the price of one product that you buy causes a...
Solutions for Chapter 6: Consumer Choices
Full solutions for Principles of Economics | 2nd Edition
the ability to produce a good at a lower opportunity cost than another producer
the failure of majority rule to produce transitive preferences for society
a study that compares the costs and benefits to society of providing a public good
the offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending
the study of how society manages its scarce resources economies of scale the property whereby long-run average total cost falls as the quantity of output increases
the uncompensated impact of one person’s actions on the well-being of a bystander
financial institutions through which savers can directly provide funds to borrowers
goods produced abroad and sold domestically
a curve that shows consumption bundles that give the consumer the same level of satisfaction
the regular pattern of income variation over a person’s life
an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services
the additional shifts in aggregate demand that result when expansionary fiscal policy increases income and thereby increases consumer spending
two goods with straight-line indifference curves
a person for whom another person, called the agent, is performing some act
production possibilities frontier
a graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology
a tax for which highincome and low-income taxpayers pay the same fraction of income
an action taken by an informed party to reveal private information to an uninformed party
a situation in which quantity supplied is greater than quantity demanded
Tragedy of the Commons
a parable that illustrates why common resources are used more than is desirable from the standpoint of society as a whole
the costs that parties incur in the process of agreeing to and following through on a bargain