Question

Homework Chapte MATCHING Match the key terms with the descriptions. Selling land, labor, capital, and entrepreneurship resources. Consumer's after-tax income or take- home pay. Items that are expected to last three years or more. Items to be used up in less than three years. Activities that consumers pay somebody else to do for them. The pleasure, satisfaction, or usefulness we get from consumption. The added utility we get from consuming one more unit of a good. The sum of all the utility we obtain when we consume a series of goods. The added cost of obtaining one more unit of a good. Additional units of a good consumed in one setting each give us less satisfaction or pleasure.

Answer 1

a. Selling land, labor, capital = sources of purchasing power.

These are the factor inputs and they render their services to the employers or the firms in the production process and get rewarded in return which is their source of income.

b. Disposable income.

The income left in hand after the payment of taxes.

c. Durable goods.

Items or goods that derive utility for a long time as they can be consumed for a longer duration.

d. Non durable goods

Items that have short life span.

e. Services.

When someone else render their service to do something and get paid in return.

f. Utility

It is the satisfaction received after consuming goods and services.

g. Marginal utility.

The addition in total utlity due to an additional unit consumed.

h. Total utility

It is the summation of all the individual utilities gained.

i. Marginal cost.

It is the addition in total cost due to an additional unit produced.

j. Diminishing marginal utility

When more and more units of goods are consumed, the utility derived from it reduces.