Basics
limited resources but unlimited human wants
What is scarcity?
market with high standardized goods, large numbers of sellers/buyers, and all participants are well informed
What is a perfectly competitive market?
the measure of the total quantity of good and services produced in an economy
What is Gross Domestic Product?
concept that states even though water is essential to survival since diamonds are less abundant they are with more to us
What is scarcity value?
According to the World Bank, how much of India's GDP is contributed to by groundwater irrigation
What is 10%?
the thing you give up when you make a choice
What is an opportunity cost?
the addition in costs that occurs when an extra unit of output is produced
What is marginal cost?
List (and preferably explain) the three types of unemployment
What are frictional, structural, and cyclical unemployment?
when players on both sides of an exchange can exercise bargaining power
What is a bilateral monopoly?
the real GDP per capita grew by what factor between 1900 and 2019
What is a factor of 9?
people are made better off by specializing in different things then trading with people of other specialties
What is gain from trade?
two sources of market fails
What are externalities and public goods?
concept that explains that changes in the quantity of money has no effect on the real quanitities in the economy
What is the neutrality of money?
4 types of rate schedules (the ways water is charged per unit)
What are flat fees, decreasing block rate, increasing block rate, and constant marginal price?
the average supermarket carries this many items on average
What is more than 33,000?
concept that explains how one individual can not be made better off without another individual being made worse off
What is Pareto Efficiency?
Name and Explain at least two factors that lead to a shift in the supply curve
What are Expectations, Number of Sellers, Input Prices, and Technology?
What are the three functions of money?
What are a medium of exchange, a unit of account, and a store of value?
water is allocated equally to users along the water's coarse
What is riparian doctrine?
Since 1900, the US population has grown by this factor
What is a factor of 4?
to get something, you must give up something
what is a trade-off?
the theorem that states that as long as the parties can negotiate, the private party should be able to solve inefficiencies created by externalities
What is Coase Theorem?
CPI (consumer price index) formula
100 x ( cost of bundle in year t)/ (cost of bundle in base year)
concept explaining that increased water efficiency can only lead to small gains of useable water
What is irrigation efficiency paradox?
The South-North Water Transfer Project attempts to move how many cubic meters of water annually from the Yangtze to the Yellow River?
What is 44.8 billion