Answer this question.

If I measure my marginal utility for my 100th McDonald's hamburger to be 8, and my first Coke to be 7, then which one will I consume next?

Define: consumer equilibrium. How do price changes upset consumer equilibrium?

Define: consumer equilibrium. How do price changes upset consumer equilibrium?

Define: income and substitution effects.

What is elasticity?

What is likely to be more elastic: the demand for JSU T-shirts or the demand for JSU football T-shirts?

Explain some of the full costs associated with wealth transfers suggested by public choice analysis.

Define: utility, marginal utility, marginal benefit, diminishing marginal utility.

Why consumers treat political and market goods differently.

Explain the relationship between total utility and marginal utility. What is the principle of diminishing marginal utility? Is it possible to have increasing marginal utility?

What is the slope of the total utility curve (upward or downward) in the range of negative marginal utility?

Which of the following most directly reflects the law of diminishing marginal utility?
a. After watching two football games, Terry decides to watch a third game.
b. A sports fan enjoys watching Monday night football rather than going to the theater.
c. After listening to three compact discs, Kim decides to go bowling rather than listen to a fourth disc.
d. A musician receives the biggest ovation of the evening after playing the final number of a recital.

***

The New York Times' John Tierney writes today:

"I don't want to begrudge the Nobel Peace Prize won last week by the Grameen Bank and its founder, Muhammad Yunus. They deserve it. The Grameen Bank has done more than the World Bank to help the poor, and Yunus has done more than Jimmy Carter or Bono or any philanthropist.

"But has he done more good than someone who never got the prize: Sam Walton? Has any organization in the world lifted more people out of poverty than Wal-Mart?"
[FULL ARTICLE HERE]