The Theory of Consumer Choice

A series of vocabulary flashcards based on key concepts from the lecture notes on consumer choice theory.

Total Utility

The total amount of satisfaction or happiness a consumer derives from consuming goods or services.

Marginal Utility

The additional satisfaction or happiness gained from consuming one more unit of a good or service.

Util

A unit of measurement for utility.

Rational Consumer

A consumer who makes decisions to maximize total utility.

Elixir of Capitalism

Refers to caffeine's role in enhancing productivity and contributing to the rise of capitalism.

Addictive Substances

Products like caffeine, nicotine, alcohol, and sugar that can lead to excessive consumption beyond the optimal amount.

Interpersonal Utility Comparisons

Comparisons of utility levels between individuals, often assumed to be unfeasible in traditional economics.

Wealth Inequality

The unequal distribution of assets among residents of an economy.