ch 7 Flashcards
1
Q
what should you use to evaluate public policies
A
positive and normative analysis
2
Q
economic surplus is
A
sum of consumers and producers
3
Q
cs=
A
reservation price - p = area between demand curve and price, up to quanity consumed
4
Q
ps=
A
p-mc = area between price and supply curve, up to quantity consumed
5
Q
how do markets create efficient outcomes
A
efficient production, efficient allocation, and efficient quantities
6
Q
gov’t intervention may create
A
some deadweight loss
7
Q
A
