1. Describe each of the four properties of indifference curves.
2. describe and explain the budge constraint. How does a consumer maximize utility under a given budget constratin? How do consumers know if they are not maximizing utility?
3. Explain what is meant by "asymmetric info" Identify and explain the two basic types of problems that arise when their is assymetric info.
4. Explain the condorcet Paradox, the failure of majority rule to produce transitive preferences for society. Explain arrows impossibility theorem. What does this say about societies choice?
5. When prices change, the income effect and substituion effect both contribute to the impact on quantities consumed. Explain how both effect a consumers utility maxization.