Chapter 4
Equilibrium output will be greater than the efficient output when these exist in the market
What are negative externalities?
Alvin will pay $3 for the 4th unit of pizza and Elmer will pay $7, this results in a total of $10 of this
What is the collective willingness to pay?
The closer this number is to 1 the greater the income inequality
What is the Gini ratio?
In the private market when quantity supplied and quantity demanded are equal
What are equilibrium price and quantity?
Bob is willing to pay $15 for a book and Carlos is willing to accept $3. $12 is called ____________
What is total surplus?
When a government imposes regulations that force firms to internalize the external costs this happens
What is efficient output? (Reduction of the equilibrium output caused by negative externalities)
This is non rival and non excludable
What is a public good?
The wage rate for men is $25 and for women $23. If I employ only men my discrimination coefficient is
What is more than $2?
This country forces 7% of personal income by saved for healthcare and makes hospitals post price lists.
What is Singapore?
Base x Height/2
What is the area of a triangle?
Cap and trade (tradeable emissions permits) has this goal in mind
What is reducing emission pollution?
Joe benefits from a public good but does not contribute to its cost. Joe is______________
What is a free rider?
In order to increase total utility we might advocate for this
What is redistributing income?
Rising prices for all and limited access are referred to as this
What are the twin problems of the health care industry?
Airport screening is an example of a service provided by ______________
What is government?
The area below the demand curve but above equilibrium price
What is consumer surplus?
They advocate for large gains to a small group
What is the special interest effect?
The Gini ratio is the numerical measurement of the inequality depicted by this
What is the Lorenz curve?
If I am a part time worker, a working poor person or chronically ill
What is having no health insurance?
When demand curves don't reflect consumers full willingness to pay this will occur
What are demand side market failures?
The area above the supply curve and below the equilibrium price
What is producer surplus?
An appeal to government for special benefits at the taxpayers' or someone else's expense
What is rent seeking?
Lifetime distribution of income is more __________ than the distribution in a specific year because of this
What is more equal?
Consumers pay lower "out of pocket" health care expenses which leads to this
What is overconsumption?
We will produce the next unit of a good when this exists
MB>MC
Government requirements for licensing of Doctor's eliminates this
What is asymmetric information?
Because Sam has to get reelected every two years he favors the type of programs that produce these
What are short term benefits?
The earned income tax credit is targeted at low-income families. It is considered this
What is a public assistance program?
Physicians follow this practice to avoid malpractice charges
What is defensive medicine?
When health care providers increase their incomes by ordering more services for their patients it's called this
What are fee for service payments?