Basics
This is the name for the value of the next best trade-off of a given choice.
What is Opportunity Cost
This arises when the actions of one affects the well being of someone else (neither party is paid)
What is an externality?
This basic type of good has a positive positive relationship between income and demand.
What is a Normal Good
What are barriers to entry?
The law of supply defines this sort of relationship between price and quantity supplied.
What is Positive?
This type of economics combines economic analysis with value judgments about the relative merits of different possible economic outcomes.
What is Normative Economics
This type of good is the source of some market failures.
What is a public good?
This is a type of good with low rivalry and high excludability (ex. satellite radio).
What is a Collective Good
This is the most common form of imperfect competition, characterized by a lack of barrier to entry, as well as diversification of products.
What is Monopolistic Competition?
The introduction of self-service gas pumps, thereby increasing supply, is an example of this factor shifting the supply curve.
What is technology?
This branch of Economics has a focus on the operation of particular markets and individual behavior.
What is Microeconomics
Congestion pricing in NYC is an example of using this government tool to address negative externalities.
What are Taxes?
A car's engine would be considered this type of good.
What is an Intermediate Good
This 1890 law was the the start of government efforts to increase market competition.
What is the Sherman Anti-Trust Act of 1890
If Sharon buys a candy bar for $10 that she would've spent $20 on, and Ozzy spends $15 when he would've spent $17. What is the consumer surplus of these interactions?
This form of efficiency believes the only way to redistribute benefits is to do so in a way that makes no one worse off.
What is Pareto Efficiency
Netflix now producing much of its own content, when it had started by streaming media produced by other companies, is an example of this practice.
What is internalizing an externality?
This is the name for when no one takes account of negative externalities due to overuse of a jointly owned resource.
What is tragedy of the commons
This tour's monopolistic pre-sale in November of 2022 was the cause of a later Minnesota law regulating pricing transparency and consumer protection.
What is the Taylor Swift Eras Tour?
This factor affecting demand is influenced by marketing/advertising and the perceived benefits of consumption.
What are Tastes?
Individual differences in abilities, interests, and resources are a means to this end.
What are gains from trade
This concept states that the initial distribution of rights does not affect the ability of parties to come to an efficient agreement.
What is the Coase Theorem
These types of goods will have a price elasticity of demand dependent on the presence of other similar goods in the market.
Need-based financial aid for college is an example of this strategy used to increase monopoly profits and social welfare.
What is Price Discrimination
On a Price v. Quantity graph showing demand, what must change for slope to become vertically steeper?
Decrease in elasticity