Summary Microeconomics and Behaviour Book cover image

Summary Microeconomics And Behaviour

- Robert H Frank, et al
ISBN-10 0077174089 ISBN-13 9780077174088
225 Flashcards & Notes
Scroll down to see the PDF preview!
  • This + 400k other summaries
  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo

A snapshot of the summary - Microeconomics and Behaviour Author: Robert H Frank Edward Cartwright ISBN: 9780077174088

  • 1 Consumer Behaviour I

    This is a preview. There are 12 more flashcards available for chapter 1
    Show more cards here

  • Key properties of an indifference curve
    1. There can be only one indifference curve for each value of U
    2. All the bundles above the indifference curve are preferred to those that lie below
    3. indifference curves are downwards sloping (more is better)
  • 1.1 The Cost-Benefit Approach to Decisions

    This is a preview. There are 1 more flashcards available for chapter 1.1
    Show more cards here

  • The reservation price of an activity x is:
    The price at which a person would be indifferent between doing x and not doing x.
  • 1.3 Common Pitfalls in Decision Making ( - )

    This is a preview. There are 1 more flashcards available for chapter 1.3
    Show more cards here

  • What are the four most common pitfalls in decision making?
    Pitfall 1. Ignoring opportunity costs
    Pitfall 2. Failing to ignore sunk costs
    Pitfall 3. Measuring costs and benefits as proportions rather than absolute monetary amounts
    Pitfall 4. Failure to understand the average-marginal distinction.
  • What is the opportunity cost of an activity?
    The value of all that must be sacrificed in order to do the activity (therefore you should be able to recognize the most valuable alternative that is sacrificed by the pursuit of a given activity.
  • What are sunk costs?
    Costs that are beyond recovery at the time a decision is made and so should be ignored.
  • What are marginal costs/marginal benefits?
    The increase in total cost/benefit that results from carrying out one additional unit of an activity.
  • 1.5 Would Parents Want Their Daughter or Son to Marry Homo Economicus?

  • The so-called Homo economicus only cares about:
    Personal costs and benefits
  • 1.6 Positive Questions and Normative Questions

    This is a preview. There are 1 more flashcards available for chapter 1.6
    Show more cards here

  • What is a normative question?
    A question about what policies or institutional arrangements lead to the best outcomes. Does not have a definite answer.
  • 2 Consumer Behaviour II

    This is a preview. There are 3 more flashcards available for chapter 2
    Show more cards here

  • 2.1 Supply and Demand Curves

    This is a preview. There are 5 more flashcards available for chapter 2.1
    Show more cards here

  • The horizontal interpretation of a demand/supply curve means:
    We start with the price on the vertical axis and read the corresponding quantity demanded/supplied on the horizontal axis.
  • The inverse demand/supplu curve (vertical interpretation) of a products tells us:
    The price at which buyers/sellers would demand specific quantities of the product.

To read further, please click:

Read the full summary
This summary +380.000 other summaries A unique study tool A rehearsal system for this summary Studycoaching with videos
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart