Save
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Ag Econ

Chapter 6

Term/QuestionDefinition/Answer
Budget Constraint shows possible combinations of 2 goods that are affordable given at consumer's limited income
Normal Good still buy or more money depending on income; quality foods
Inferior Goods more mulah, less likely to buy
Total Utility satisfaction derived from consumer choices
Marginal Utility Additional utility provided by one additional unit of consumption MU=change of total utility / change of quantity
Diminishing Marginal Utility common pattern that each marginal unity of a good consumed provides less of an addition to utility than previous unit
What could affect consumer choices? income, prices, and preferences
What is another way Utility/Marginal Utility can be used? Utility/Marginal Utility can be used to analyze how consumer choices change when budget constraint shifts in response to changes in income/price
Substitution Effect when price changes, consumers have incentive to consume less of good w/ relatively higher price and more of good w/ relatively lower price; always happens simultaneously w/ income effect
Income Effect higher price means buying power of income has been reduced, even though actual income hasn't changed; always happens simultaneously with substitution effect. buying power decreased even though availability hasn't
Traditional Economy model assumes rationaly thinking; ppl take all available info and make consistent/informed decisions in best interest; assumes human has complete self control
Behavioral Economics takes into account ppls state of mind; seeks to enrich understanding of decision-making by integrating insights of psychology into economics
What are two other thing behavioral economics do? investigates given price amount that can mean different things to individuals depending on situation leads to decisions appearing outwardly inconsistent/irrational to outside observer
Created by: horktera
Popular Economics sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards