A2 consumer theory definitions

Economic efficiency is used to measure how efficient the ___is.

Productive efficiency means producing the goods and services at the lowest possible _

Allocative efficiency refers to producing the combination of goods and services mostly ____ by the society

___is the satisfaction or happiness gained from the consumption of goods and services.

______ is the addition o total utility from the consumption of one more unit of goods or service.

Law of diminishing marginal utility: Marginal utility will_ when quantity consumed _

Budget line shows numerically the possible combinations of 2 products that a consumer can purchase with a given __and fixed __

Indifference curve is a curve showing all possible combinations of two goods that gives a consumer __satisfaction, which a consumer is indifferent.

Normal goods: when income ___, demand for the good ___

Inferior goods: when income ___, demand for the good ___