Csu Arec 202 Final Exam Questions And Answers Already Passed
THE rule (and its variations): How is the optimal level of any activity (for consumers, firms or governments) determined? Marginal cost = marginal benefit On the 2x2 efficiency table: What effect on efficiency (total surplus) do government interventions have in a market in which originally the government had not intervened? Market works well - marginal benefit =marginal cost total surplus was maximized, and the government intervenes things will go wrong and vice versa (if it's not broke don't broke don't fix it and vice versa) (tax, regulation, etc.) What is meant by "deadweight loss"? amount that total surplus decreases What is meant by the terms "efficiency," "socially optimal outcome" and "total surplus"? Efficiency - what you produce such that you can't make anyone better off without taking something from someone else (not concerned with fairness, but does marginal benefit = marginal cost)
Información del documento
- Subido en
- 10 de junio de 2024
- Número de páginas
- 9
- Escrito en
- 2023/2024
- Tipo
- Examen
- Contiene
- Preguntas y respuestas
