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25 Cards in this Set
- Front
- Back
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What does Deadweight loss Measure |
Ineffieciency |
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What are the minimum price regulations, |
Price Floor, Minimum Wage, Production quotas, Import Quotas, Price Supports |
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Difference Between Monopoly and Monopsony, |
Many buyers and few sellers, Many Sellers few buyers |
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How do you calculate the Lerner index, |
Price - MC / P |
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What are the Five ways to Control Price with market Power. |
Price Discriminate, Two Part Tariff, Peak Load Pricing, Bundling, I.P Discrimination. |
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What are the 3 degrees of Price Discrimination; |
Reservation, Block, Distinguish Elasticities` |
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Inter-temporal P.D |
Separating people into groups then charging different prices at different times. |
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Welfare Economics; |
Evaluating the social desirability for an alternative economics |
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What are the two welfare theorems; |
1- Trading in a competitive market it Economically efficient. 2. Equitable equilibrium can be achieved by suitable distribution of resources |
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Pareto Optimal, |
Economic efficiency, Combines consumers and producers |
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Pareto Rule; |
Policy is only acceptable is No is made worse off |
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What is shown in the Edge worth Box Diagram |
Graphical illustration of the exchange of two goods between two people |
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What are the two types of inefficiencies; |
Inefficiency Exchange vs. Productions |
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How are the curves in the Edge worth box shaped and why? |
Tangent, Get more as one gives up. |
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Market equilibrium results in what, |
Pareto Optimal |
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(X) represents what in the edgeworth Box |
Market Equilibrium |
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Pareto Improvement; |
Improving one good when losing another good |
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Eqimarinal Principal; |
Put exchange and production together |
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Utilitarian; |
Everything is equal or every individual has a different income. |
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Ealitarian; |
Total Utility and he Distribution of Utility |
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Rawlsian; |
Society is only as strong as its weakest member. |
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Cost Benefit Analysis; |
Measuring the cost of one thing to obtain another. |
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What are the two types of Externalities |
Economies, dis economies |
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When does efficiency hold in a competitive market; |
When MRS=MRT
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Coase Theorem; |
Externalities can be prevented if property rights were assigned and traded |
