Government Policy/
International Trade
International Trade
The graph used in the Robinson and Crusoe example
Production Possibility Frontier
The economic actors who are responsible for supplying goods and services into the economy
Firms
A firm has this when they face a downward-sloping demand curve
Market Power
when one person's consumption of a good reduces the amount others can have
Rivalry in Consumption
Formal rules and structure that organize human interaction
Organizations
Taxes creates a ____ between the amount consumers pay and the amount suppliers receive.
Price Wedge
The difference of a firms total revenue and total costs
Profits
When members of an oligopoly act as a monopoly, they are a ___
Cartel
The type of good characterized by a low degree of rivalry and a high degree of excludability
Collective Goods
Sneak attack question!
Individuals who take on the risk of attempting to create new products or services, establishing new markets, or develop new methods of production.
Entrepreneurs
The reduction in social welfare is called the ___ of the tax
The costs that may change in the short run
Variable costs
The type of barrier to entry that includes patents and copyright
Government-Created Monopolies
The type of good characterized by high rivalry and low excludability
Common Resources
The proclivity of elected officials to introduce projects that steer money to their communities
Pork Barrel Politics
For a country that becomes an ___, social welfare increases, but consumers benefit, while producers suffer losses
importer
The increase in costs incurred from producing an additional unit of output
When a firm charges different prices to different customers
Price Discrimination
The first U.S. city to implement congestion pricing
New York City
Socially unproductive activities that seek to direct economic benefits to one set of actors rather than another
Rent-Seeking
What matters during trade is not the absolute productivity of either party, but their ___
Comparative Advantage
The principle of when a firm scales up, the addition of more workers/equipment/etc. produce less and less output
Diminishing Returns to Scale
1890
The year California created an emissions trading system
2013
The two distinct powers that the government possesses that other organizations don't.
1. The ability to tax it's citizens
2. The legal monopoly on the legitimate use of force