coolandewr review internet Flashcards
Coercion
is the limiting of people’s wants and increasing the amount of work individuals are
willing to do to fulfill those wants
Steve Levitt
that unlock
observations with basic economic reasoning
implicit Costs
are costs associated with a decision that often aren’t included in normal
accounting costs.
Illusionary sunk costs-
costs that show up in financial accounts but that economists argue
should not be considered in a choice because they are already spent
Classical Economists- were social philosophers who covered all aspects of social science
● Adam Smith
● Thomas Malthus
● John Stuart Mill
● David Ricardo
Karl Mar
against the invisible hand
Political and Social forces work together against the invisible hand
Algorithmic approach to problems reflects economists’
Algorithmic approach to problems reflects economists’ Herbert Simon and Friedrick von Hayek
theories of how an economy works and how systems process information.
Who is socialism closely related to in economics?
Karl marks
Referee-
setting the rules that determine relations between business and households
Actor
collection money in taxes and spending that money on projects such as defense
and education
Two largest categories of spending are
Two largest categories of spending are income security and health and education,
national defense is a distant third
Price ceilings transfer
Price ceilings transfer producer surplus to consumers and therefore are equivalent to a
tax on producers and a subsidy to consumers
Price floors transfer
Price floors have the opposite effect; they
are a tax on consumers and a subsidy to producers
The negative aspects of price controls
The negative aspects of price controls worsen as the length of time considered rises
because elasticity rises as time progresses
In the case of a private good the market demand curve is
In the case of a private good the market demand curve is the horizontal sum of the individual
demand curves
