Exam prep Flashcards
Evaluation points
Elasticity of demand (PID=no change in Q) - eqns (change in qd/change in p)
BMs
Regressive
incentives + dependance
Imperfect info
trickle down effect (save, spend abroad, avoid tax)
inequality
hypothecated tax
zambia
syria
kinked d curve
xed for strong/weak complements and substitutes
consumer/producer surplus shifts
product cannibalisation (diet coke < coke zero)
policy myopia
wasteful duplication of resources and non exploitation of full eos
discrimination
moral hazard (for nationalisation eg nhs)
gov is never right
market is never right
just start complaining about anything for eval
definitions**
the use of price discrimination to cross-subsidise loss-making services
extra
Normative statements (opinions/value judgements)
weighing up points
assumptions made in theory that wont hold in real life
SR + consequences without considering LR (+ vice versa)
winners and losers
Impact on firms (new and old) + poor (regressive)
TUs
externalities (change q to pq, internalising externality, reduce over/under consumption/production increase ae reducing mf)
paternalistic
anti competitive behaviour
poverty trap
divorce of ownership from control (principle agent problem)
other objectives = profit satisficing
pasific
splat
pintswc
pssst
