2020 NOTE: Each of these pages is offered as a supporting, supplemental resource for material already taught in the class. Each of the steps and assignments posted to this page are optional, and not graded (unless you are using this page to make up a related assignment that was assigned BEFORE school was cancelled due to COVID-19.
1. READ THESE SLIDES: Defining Utility
utility.pdf | |
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2. COMPLETE THIS SURVEY: Rank the utility and marginal utility of four consumer products or servicesThe image to the right is just an example from the survey about 1 of 4 products or services. Once we have the results, we can see just how widely each person's rating of the utility of a good or service can vary, and how its marginal utility will diminish more quickly for some people than for others.
FUTURE FYI: While in reality, utility is not a fixed value (it varies depending on the person and the situation in which they find themselves), in our culminating simulation at the end of this class (Economics & State: Trade and Develop), goods and services that you create and sell during the market stage ARE assigned a fixed utility value. As we just pointed out, this IS unrealistic, but it is necessary in order to make a simulation work. If each person valued each item individually, we could not tally Utility scores for individuals and create the motivation to purchase products as consumers (which we need for the simulation to work). |
WANT TO LEARN MORE? OPTIONAL RESOURCES
There is a great deal more to learn about utility. If you take a college course in Economics, you will learn much more about maximizing marginal returns, among many other topics. It might also be interesting to see the role played by the concept of utility in the Utilitarianism philosophy (see Crash Course video below). Again, none of this is required, but check it out if you're interested.
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REVIEW CONCEPTS AND VOCABULARY FROM THE INTRO TO ECON UNIT WITH QUIZLET |
IF YOU WERE ABSENT . . .
1. Whether on paper or on a Google Doc, take notes on the definitions for these terms: UTILITY, MARGINAL UTILITY, and DIMINISHING MARGINAL UTILITY.
2. Then create a new example (not hamburgers or refrigerators from the notes) that you believe demonstrates utility, marginal utility and diminish marginal utility well. Explain the example and what utility the good or service gives you, what it's marginal utility is (when you have 2 of the good or service), and its overall diminish marginal utility with each additional unit: Does it diminish rapidly or slowly? Explain.
3. Complete the Google Forms survey (see #2 above).
2. Then create a new example (not hamburgers or refrigerators from the notes) that you believe demonstrates utility, marginal utility and diminish marginal utility well. Explain the example and what utility the good or service gives you, what it's marginal utility is (when you have 2 of the good or service), and its overall diminish marginal utility with each additional unit: Does it diminish rapidly or slowly? Explain.
3. Complete the Google Forms survey (see #2 above).