Economics Basics: Definitions and Theories

The want-satisfying power of a commodity or service.

Utility is psychological, personal, relative, and has no moral significance or ethics.

Form utility, place utility, possession utility, and time utility.

<p>A law that states that the marginal utility of a commodity decreases as its consumption increases.</p> Signup and view all the answers

<p>The consumer is rational, utility can be measured in terms of utils, constant marginal utility of money, homogeneous units of a commodity, continuous consumption, and no change in taste or preferences.</p> Signup and view all the answers

<p>Progressive taxation, where the marginal tax rate increases as income increases.</p> Signup and view all the answers

<p>The difference between what a consumer is willing to pay and what they actually pay for a good or service.</p> Signup and view all the answers

<p>Jevons and Dupit, later improved by Alfred Marshall.</p> Signup and view all the answers

<p>The Law of Diminishing Marginal Utility.</p> Signup and view all the answers

<p>It provides insights into consumer behavior and is a fundamental concept in microeconomics.</p> Signup and view all the answers