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What determines a household’s consumption possibilities?

INSTRUCTIONS TO CANDIDATES
ANSWER ALL QUESTIONS

Assignment Instructions

Answer all of the questions below in 2-3 paragraphs each.  Your final submission should be a minimum of two (2) double spaced typed pages. 

Be sure to save an electronic copy of your answers before submitting it to Ashworth College for grading.  Unless otherwise stated, you should answer in complete sentences, and be sure to use correct English, spelling, and grammar.  Sources must be cited in APA format.

Your response should be a minimum of two (2) double-spaced pages; refer to the Length and Formatting instructions for additional details.

 

1. What determines a household’s consumption possibilities? 25 Points

2. How would you answer someone who says that marginal utility theory is useless because utility cannot be observed? 25 Points

3. What is consumer surplus? How is consumer surplus calculated? 25 Points

4. What is a firm and what is the fundamental economic problem that all firms face? 25 Points

 

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