Lecture VII: "Econland, Pareto Efficiency" Flashcards
1
Q
Luxury good income elastic of inelastic? E^income>1
A
Income Elastic
2
Q
A normal, necessary good. Income elastic or inelastic? 0
A
Income Inelastic
3
Q
How much effort one needs to give up to produce a good
A
Seller costs
4
Q
The highest standard of efficiency for markets. One can’t become more better off without making another worse off. (“The pie is as large as possible”)
A
Pareto Efficiency
5
Q
Additional cost to sellers to produce the next increment, higher quantity of something
A
Marginal cost
6
Q
The value of the next reservation price on a demand curve.
A
Marginal reservation price
