Economies of Scale and International Trade,a
... Economies of Scale Economies of Scale make it advantageous for each country to specialize in the production of only limited number of goods & services and to manufacture them in large quantities, partly for exports. Two types: (1)External economiescost per unit depends on the size of industry, not t ...
... Economies of Scale Economies of Scale make it advantageous for each country to specialize in the production of only limited number of goods & services and to manufacture them in large quantities, partly for exports. Two types: (1)External economiescost per unit depends on the size of industry, not t ...
Efficient Provision of Public Goods
... Under uniform taxation, majority voting results in the Pareto efficient level of public good provision since the median voter prefers an expenditure level such that his MWTP is equal to the marginal costs ...
... Under uniform taxation, majority voting results in the Pareto efficient level of public good provision since the median voter prefers an expenditure level such that his MWTP is equal to the marginal costs ...
Economic Survey
... Governments use excise taxes to discourage sales of products that are thought to be harmful to the public – Cigarettes, alcohol, gasoline (Chicago excise tax). ...
... Governments use excise taxes to discourage sales of products that are thought to be harmful to the public – Cigarettes, alcohol, gasoline (Chicago excise tax). ...
Chapter 10 1. The information below provides the prices and
... private solution to the noise problem requires an additional €2 billion of transaction costs (due to legal fees, the large number of affected parties, and enforcement costs) can there be a private solution to the problem? Why? ...
... private solution to the noise problem requires an additional €2 billion of transaction costs (due to legal fees, the large number of affected parties, and enforcement costs) can there be a private solution to the problem? Why? ...
University of Vermont Department of Economics Course Outline
... http://www.uvm.edu/~uvmppq/ppq/student/studentcode.pdf Code of Academic Integrity http://www.uv.edu/~uvmppq/ppq/student/acadintegrity.pdf Note: It is the University policy to allow students to honor their religious holidays. Students should submit in writing by the end of the second full week of cla ...
... http://www.uvm.edu/~uvmppq/ppq/student/studentcode.pdf Code of Academic Integrity http://www.uv.edu/~uvmppq/ppq/student/acadintegrity.pdf Note: It is the University policy to allow students to honor their religious holidays. Students should submit in writing by the end of the second full week of cla ...
Economic Concepts
... Marginal Profit = Marginal Revenue - Marginal Cost. Important Observation - If the profit function has a maximum, this occurs when marginal revenue = marginal cost. Examples will be given in class Supply and Demand A supply curve describes the relationship between the quantity supplied and the selli ...
... Marginal Profit = Marginal Revenue - Marginal Cost. Important Observation - If the profit function has a maximum, this occurs when marginal revenue = marginal cost. Examples will be given in class Supply and Demand A supply curve describes the relationship between the quantity supplied and the selli ...
Consumer & utility
... consumption of successive units: If a person eats a number of apples, each addition apple will give diminished utility if eaten one after the other on the same day. However , if they are eaten one per day then the MU may not diminish. ...
... consumption of successive units: If a person eats a number of apples, each addition apple will give diminished utility if eaten one after the other on the same day. However , if they are eaten one per day then the MU may not diminish. ...
Lessons 1 -2
... E.g. Market creates strong brand so demand increases. •Price expectation •Beliefs about how prices in future will change e.g. new technology on the market •Normal goods – demanded more when consumer income increases and less when it falls e.g. expensive wine •Inferior goods – Demanded more when inco ...
... E.g. Market creates strong brand so demand increases. •Price expectation •Beliefs about how prices in future will change e.g. new technology on the market •Normal goods – demanded more when consumer income increases and less when it falls e.g. expensive wine •Inferior goods – Demanded more when inco ...
Demand, Willingness to Pay and Marginal Benefits
... for the good. Conceptually, it is constructed as follows: (1) start with a high price; (2) ask all potential buyers how many items they would be willing to buy at that price; (3) make a note of that price and quantity; (4) decrease the price slightly and repeat the process. The example below shows t ...
... for the good. Conceptually, it is constructed as follows: (1) start with a high price; (2) ask all potential buyers how many items they would be willing to buy at that price; (3) make a note of that price and quantity; (4) decrease the price slightly and repeat the process. The example below shows t ...
Econ 106 * SI review questions for exam 2
... Econ 106 – SI review questions for exam 2 (with brief answers in italics) Hint: These questions are all based on class notes. Try to answer them on your own but refer to your notes if you get stuck or if my question is not clear. This is a good way to study on your own – turn everything you have bee ...
... Econ 106 – SI review questions for exam 2 (with brief answers in italics) Hint: These questions are all based on class notes. Try to answer them on your own but refer to your notes if you get stuck or if my question is not clear. This is a good way to study on your own – turn everything you have bee ...
Review for Exam #1
... 3. Compare the composition of U.S. output in the year 1900 with its composition in the year 2000. At the beginning of the 1900s, about two-thirds of U.S. output consisted of farm goods, manufactured goods, and mining, whereas in the year 2000, 80 percent of U.S. output consisted of services. ...
... 3. Compare the composition of U.S. output in the year 1900 with its composition in the year 2000. At the beginning of the 1900s, about two-thirds of U.S. output consisted of farm goods, manufactured goods, and mining, whereas in the year 2000, 80 percent of U.S. output consisted of services. ...
Chapter 5 What is Supply?
... workers, productivity usually goes up. • Unhappy, unmotivated workers ...
... workers, productivity usually goes up. • Unhappy, unmotivated workers ...
Final Exam B
... a) (10) What price would a profit-maximizing monopolist charge if C(Q) = F + 2Q, where F > 0? What are the monopolist’s profits if average fixed costs are equal to 4 at the profit-maximizing quantity? b) (10) How much better/worse off would consumers be if the competitive outcome prevailed in this m ...
... a) (10) What price would a profit-maximizing monopolist charge if C(Q) = F + 2Q, where F > 0? What are the monopolist’s profits if average fixed costs are equal to 4 at the profit-maximizing quantity? b) (10) How much better/worse off would consumers be if the competitive outcome prevailed in this m ...
Factor Market and Market Failures
... due to the following three reasons: 1. Workers are not homogenous: as the labor quality varies, wage rate varies, too. The high skill labor has a higher MRP, their demand for them is usually higher. The education level, experience, training etc all contribute to the differences in labor qualities, 2 ...
... due to the following three reasons: 1. Workers are not homogenous: as the labor quality varies, wage rate varies, too. The high skill labor has a higher MRP, their demand for them is usually higher. The education level, experience, training etc all contribute to the differences in labor qualities, 2 ...
Key Terms and Concepts: Chapter 7 Average Revenue Total
... A good whose characteristic is such that the right to the good is clearly defined and others can easily be excluded from its use. ...
... A good whose characteristic is such that the right to the good is clearly defined and others can easily be excluded from its use. ...
Study Guide
... 8) Why does curve D approach the x-axis but never touch it? _____________________________________________________ 9) Explain how an accountant would calculate ATC versus the method an economist would use to calculate ATC. ...
... 8) Why does curve D approach the x-axis but never touch it? _____________________________________________________ 9) Explain how an accountant would calculate ATC versus the method an economist would use to calculate ATC. ...
Externality
In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit.For example, manufacturing activities that cause air pollution impose health and clean-up costs on the whole society, whereas the neighbors of an individual who chooses to fire-proof his home may benefit from a reduced risk of a fire spreading to their own houses. If external costs exist, such as pollution, the producer may choose to produce more of the product than would be produced if the producer were required to pay all associated environmental costs. Because responsibility or consequence for self-directed action lies partly outside the self, an element of externalization is involved. If there are external benefits, such as in public safety, less of the good may be produced than would be the case if the producer were to receive payment for the external benefits to others. For the purpose of these statements, overall cost and benefit to society is defined as the sum of the imputed monetary value of benefits and costs to all parties involved. Thus, unregulated markets in goods or services with significant externalities generate prices that do not reflect the full social cost or benefit of their transactions; such markets are therefore inefficient.