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Unformatted text preview: Econ 1 section 7 Corey Garriott ([email protected]) Feb. 25, 2008 There are no section 6 notes posted because I just went over the midterm that day (to the, oh, six students who showed up for it). As for the session we missed during President’s Day, let’s talk about how to handle that today. I am going to cover lectures 11 and 12 today. Lecture 11 appears to restate much of lecture 10, so I will skip it so we can get caught up after President’s Day. 1 Definitions Utility : Any measure that is interpreted as a ranking . Marginal utility : The change in utility caused by eating/using/having one additional unit. Diminishing marginal utility : A downward sloping marginal utility schedule ( i.e. on a graph). Rational : This is a big one in economics. An agent is “rational” if • its goal in life is to maximize a quantity (utility) • acting strategically • using all the information available to it • exhaustively and without making mistakes....
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This note was uploaded on 03/20/2008 for the course ECON 1 taught by Professor Nagata during the Fall '08 term at UCLA.
- Fall '08