Reference no: EM132440683

1. Is all households consume the same goods and services?

2. What is true about the tastes and preferences of each individual?

3. What happens to the amount of utility that a person receives as they continue to consume more of the same good or service?

4. How are price and marginal utility related when it comes to making decisions?

5. Who decides what an individual prefers?

6. What is the general rule for maximizing utility?

7. As the income of a consumer increases, what tends to happen to the choice the consumer makes?

8. As the price of one item increases, what tends to happen to the choice that consumers make?

9. Explain the two effects that explain your answer to the previous question.

10. What will happen to the number of hours and individual works as their hourly wage increases?

11. Typically, what type of household saves more of their income?

12. Is higher education cyclical (spending increases when the economy does well) or counter-cyclical (spending increases when the economy is doing poorly)?