Term
Jack's per blanket (producer) surplus is $6.
Refer to first direction on midterm |
|
Definition
|
|
Term
If Jajuana buys a blanket from Jack (again, the price is $16) then her surplus is $15.
Refer to first direction. |
|
Definition
|
|
Term
| Chris buys a new printer for his dorm room that--- when it prints--- emits a powerful smell of ozone and stinky burned platic that his two roomates (and only his two roommates), Will and Pat have to smell. This is an example of a negative externality. |
|
Definition
|
|
Term
| Continuing with the previous problem, if the three roommates, Chris, Will and Pat had all three purchased the printer together and they all shared its use, then there would be no negative externality. |
|
Definition
|
|
Term
| In the absence of negative externalities, the marginal social cost equals the marginal private costs. |
|
Definition
|
|
Term
| Economic surplus is the sum of consumer surplus, producer surplus, and deadweight loss. |
|
Definition
|
|
Term
| If there is a positive externality than the marginal social cost curve is above the marginal private cost curve. |
|
Definition
|
|
Term
| Begin at market equilibrium. If the government imposes a price floor above the market equilibrium price, then the consumer surplus will shrink. |
|
Definition
|
|
Term
| The tax incidence of a tax on buyers by definition, will always be higher on buyers than sellers. |
|
Definition
|
|
Term
| The tax incidence of an excise tax will be borne entirely by sellers if the market demand curve is perfectly elastic. |
|
Definition
|
|
Term
| If the ABC company generates 200,000/ year in revenue and has explicit costs of 150,000 and implict costs of 100,000, then the accounting profit is: -50,0000/ year. |
|
Definition
|
|
Term
| If there are negative externalities, a Pigouvian tax can result in a more efficient outcome for society. |
|
Definition
|
|
Term
| Rivalry means A's consumption of a good does not afect the ability of B to consume the same good |
|
Definition
|
|
Term
| Direct TV ( a sattelite subscriber television service) is an example of a public good. |
|
Definition
|
|
Term
| Private goods are both rival and excludable. |
|
Definition
|
|
Term
| Common resource goods are rival but nonexcludable |
|
Definition
|
|
Term
| In figure 1, the shift in the budget line from an intercept of X1 to X2, could have been caused by a near doubling of the price of good X. |
|
Definition
|
|
Term
| In figure 1, among the indifference curve options available in the diagram, consumers would have the highest level of satisfaction if they were able to reach I''' |
|
Definition
|
|
Term
| The vast majority of businesses in the U.S. are either sole propriotorships or partnerships. |
|
Definition
|
|
Term
| The principal agent problem is most prevalent in the coporate form of ownership, compared to sole proprietorship and partnerships. |
|
Definition
|
|
Term
| Assuming the cost of labor input is constant, if marginal productivity falls, then marginal costs also fall. |
|
Definition
|
|
Term
| The minimum point of a marginal cost curve is generally associated with the maximum point of the total product function. |
|
Definition
|
|
Term
| Most marginal cost curves are u-shaped becuase firms typically experience increasing, then decreasing returns to a factor as output increases from zero. |
|
Definition
|
|
Term
| As Q increases, if the marginal cost is falling, then the average total cost must also be falling. |
|
Definition
|
|
Term
| According to superfreakonimcs, if a seat belt were tested as a child safety seat, it would pass. |
|
Definition
|
|
