concept

Economics 101 with Sly at University of Oregon

About this deck

By: Ying Zhou
Textbook:

The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else
Created: 2010-10-25
Size: 19 flashcards
Views: 55

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prescribed by

由…规定

mandated

被统治

designated

指定的

Island economies

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Centrally planned economies

null

Market economies

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Production efficiency

any good or product can be produced in several ways.
requires that the least amount of resources be used to manufacture products and services.

Consumption efficiency

consumer often face several choices to satisfy their needs or wants.
requires that, given the same cost, individuals consume their cost preferred （首选的）goods.

Tragedy of the COMMONS

common resources have the potential to be overused.
A problem where every individual's use of a resources depletes (耗尽) the stock, or value, for other consumers.

Involuntary无意识 consumption

consumption efficiency requires that individuals consume the goods and resources that they want and not consume the goods that they don't want.
It is often a case the use of a resource by one individual necessarily leads the consumption by other individuals.
eg. neighbors play music loudly
eg. use of vaccines—if the person sitting next to you get a flu shot, you are more protected, even though may not get a vaccines.

Allocate efficiency/efficiency of distribution

when resources are scare, not easily found, or easily transported, not everyone is able to acquire and use them.
requires that the individuals with most needs/wants willing to pay are those who obtains the resources available.

Innovative efficiency

new goods, products and services methods are constantly coming in to existence.
occurs when old goods are replaced by new goods that are more desirable and old production techniques are replaced by new methods that require few resources.

Horizontal equity

all individuals with the same characteristics should be treated equally. same people the same

Vertical equity

all individuals with different characteristics should be treated differently. different people the different

Asymmetric

adj. 不对称的

Moral hazard

describes the disincentive of a person whose behavior is not perfectly observed, verified, or understand, to provide the truth and act responsibly.

substitute

a change in price of one, affects the demand for the other

Pricing Power

Firms have the ability to set prices well above actual costs of production. aka "monopoly power" or "market power". Key to obtain_____ is to limit competition*.

how pricing power can arise

enormous set up costs; machinery
natural monopolies; location ex:oil
sole aquisition of primary resources; a dam can only be made so may times on one river.
patent rights
proprietary info.

About this deck

By: Ying Zhou
Textbook:

The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else
Created: 2010-10-25
Size: 19 flashcards
Views: 55

About StudyBlue

“I have used this website for three exams, and I see a huge difference in my test results.”
Naj