Define: rent seeking. Explain, verbally and graphically, the economic case against minimum wages. Who benefits from minimum wage laws? How does rent seeking fit into this analysis?

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.