Econ.docx - Chapter 8 1 The idea of consumer sovereignty...

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Chapter 8
2.A group which a consumer wishes he or she could be to is an
3.A Budgetline shows all the combinations of two goods that a consumer can purchase, given his or her monetary resources and the prices of the two goods.4.The idea that a consumer’s additional utility from successive units of a good tends to decrease is known as
5.The feeling of lack that comes from comparing oneself with someone who has more is known as
6.Annual advertising expenditures in the United States are equivalent to $800per person7.The practice of reducing one’s overall level of consumption in order to reduce their environmental impacts is referred to as
8.A conscious decision to live with a limited or reduced level of consumption is known as
9.About 1/3 of the world’s population suffers from absolute deprivation.
10. Economic research has shown that one’s income level has no effect on one’s happiness.
11. Shallow green consumerism means a consumer will choose ecofriendly products, but not necessarily reduce his or her level on consumption.
12. Renee allocates her income between soup and nuts. If the price of soup increases while the price of nuts remains constant, Renee’s budget line will shift inward to a new parallelbudget line.
13. John allocates his income between bows and arrows. Suppose that a graph of his budgetline shows quantity of bows on the horizontal axis and quantity of arrows on the vertical axis. If the price of bows decreases, Joh’ budget line pivots outward to a new line with a steeper slope.

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