Incentives and Unintended Consequences
What unintended consequence occurred when the NBA added the 3-point line in 1979?
Shorter shooters became more valued, ex. Steph Curry.
This is a modern day example of a command economy.
North Korea, China (which is more mixed today), Vietnam, Cuba, etc.
This is a question an economic system must answer.
What will be produced? How will it be produced? How will the goods be distributed?
Infant mortality, life expectancy, number of books, literacy, happiness
Markets are similar to this new modern invention in the way they gather many contributors to create one product and are not completely understood by any one person.
AI.
This happened when the government of the Italian town of Abruzzi offered bounties for dead snakes.
People bred snakes; snake pop. went up.
The concept that makes managing a command economy very difficult, which involves the fact that people are more likely to abuse public rather than private property.
Tragedy of the Commons
The economic question "how will the goods be distributed?" was answered by the Soviet Union in this way.
Equal distribution to all classes.
This is the name for the shape of the graph that shows rapid economic growth in the last 200 years.
Hockey stick.
This is an example of a product that involves a vast network of production and distribution that no one person understands.
Roses.
This is one of the types of unintended consequences.
Policies that lead to a benign result; such as Steph Curry.
Policies that lead to the opposite of the intended result, such as the rising snake population.
Policies that act counter to the policy goal, and yet the policy still achieves its goal.
Agriculture
This type of economic system is used in the United States.
Mixed economy.
This is the cause most recent economic growth in the last 200 years can be attributed to.
Industrial Revolution.
This is a way that entrepreneurs can bypass entrenched interests.
Go directly to the consumer. (attract investors, etc.)
This is a way that implementing seatbelts and airbags might lead to unintended consequences.
People drive more recklessly.
People overall become safer in more minor crashes.
The Soviet Union grew its economy rapidly in the 1920s and 1930s through this economic policy.
Heavy industry.
This economic system is used by hunter-gatherer tribes in the Amazonian jungle.
Traditional.
Life expectancy and infant mortality rates started changing drastically around this year.
1800 AD.
These are the four factors of production.
The Soviet Union collapsed economically because of this reason.
The natural resources their economy was based on became too expensive and difficult to gather (iron, oil, coal, etc.)
Name 3 economic goals.
Security, growth, freedom, stability, efficiency, equity.
This is the reason Kodak did not produce the digital camera.
It would have hurt their control of the market (of film and film cameras)