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25 Cards in this Set

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  • Back

What does Deadweight loss Measure

Ineffieciency

What are the minimum price regulations,

Price Floor, Minimum Wage, Production quotas, Import Quotas, Price Supports

Difference Between Monopoly and Monopsony,

Many buyers and few sellers,


Many Sellers few buyers

How do you calculate the Lerner index,

Price - MC / P

What are the Five ways to Control Price with market Power.

Price Discriminate, Two Part Tariff, Peak Load Pricing, Bundling, I.P Discrimination.

What are the 3 degrees of Price Discrimination;

Reservation, Block, Distinguish Elasticities`

Inter-temporal P.D

Separating people into groups then charging different prices at different times.

Welfare Economics;

Evaluating the social desirability for an alternative economics

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

Pareto Optimal,

Economic efficiency, Combines consumers and producers

Pareto Rule;

Policy is only acceptable is No is made worse off

What is shown in the Edge worth Box Diagram

Graphical illustration of the exchange of two goods between two people

What are the two types of inefficiencies;

Inefficiency Exchange vs. Productions

How are the curves in the Edge worth box shaped and why?

Tangent, Get more as one gives up.

Market equilibrium results in what,

Pareto Optimal

(X) represents what in the edgeworth Box

Market Equilibrium

Pareto Improvement;

Improving one good when losing another good

Eqimarinal Principal;

Put exchange and production together

Utilitarian;

Everything is equal or every individual has a different income.

Ealitarian;

Total Utility and he Distribution of Utility

Rawlsian;

Society is only as strong as its weakest member.

Cost Benefit Analysis;

Measuring the cost of one thing to obtain another.

What are the two types of Externalities

Economies, dis economies

When does efficiency hold in a competitive market;

When MRS=MRT


Coase Theorem;

Externalities can be prevented if property rights were assigned and traded