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23 Cards in this Set
- Front
- Back
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Inelastic Demand
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demand is vertical; when the price increases, the demand will not change.
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Price Floor
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legally imposed minimum price of a good or service. |
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3 things to remove surplus & why
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1-Export subsidies (paying Americans to sell food to other countries) this is a comparative advantage 2-Pay farmers not to farm 3-buy & destroy (gov. cheese) increase in supply leads to a decrease in prices, and the government wants to stop this and keep farmers in business. |
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Comparative Advantage
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taking advantage of what you are good at -if you are better at doing something than someone else, then you exchange with others to get the best quality product. |
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"I, Pencil" concept
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Every good is comprised from parts all over the world. -Everything is insanely interconnected. -We trade with other people because we cannot do everything ourselves. |
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Downsides of International Trade (counterargument) |
-infant industries -national security argument (dependency issues) -unfair competition |
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Trade Deficit
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imports>exports
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Trade Surplus |
exports>imports
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Trade rules
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sell when price>cost |
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Import Tariffs
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Trade-offs: helps domestic producers, hurts consumers |
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Death Penalty
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-intended to be a benefit and to deter crime -expensive $$ |
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Why Police are employed/paid for by government
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-transaction costs (cheaper) -the amount of police demanded based on their relative benefit |
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Drug Wars |
-traditionally fought on "supply" side -drugs can have an inelastic demand when hard drugs are involved and the person is addicted -elastic with "gateway drugs"; not really addicted -by reducing supply, reduces people taking gateway drugs |
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Legalize pros and cons
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OPPORTUNITY COST for fighting the drug wars -More people using drugs and doing silly stuff -drugs are cheaper; less incentive to do crime -money preventing drug use goes to other things like education |
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Minority
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Group that has lesser access to positions of power, prestige, and status in society |
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Discrimination |
treating people differently based on arbitrary, or prejudicial reasons |
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Affirmative Action
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efforts to provide equal opportunities in terms of employment and education to underrepresented groups of people
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Tokenism
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hiring certain workers solely to demonstrate an attempt to comply with affirmative action |
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Gender Gap |
-closer to .95 when caretaking removed |
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Poverty #s in U.S.
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-1 out 5 children -family of 4 living on less than $24,000 -14.5% of U.S. population poor |
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Universal entitlements |
Examples: education, maternity/paternity leave |
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Direct Targeted Aid
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Costs & Benefits Helps people out, $$costs a lot, fear of discentives and dependency |
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Trickle Down Economic Theory
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benefits of economic growth and prosperity trickle down to all |
