Queen's Econ 110 Final Exam- Spring
Q&A 100% Solved | Graded A+
basic functions of government - ✔✔when the governments monopoly of
violence is secure and functions with effective restrictions against its
arbitrary use, citizens can safely carry out their ordinary economic social
activities
the case for free markets - ✔✔the informal defence of free markets is
based off three arguments
1. free markets provide automatic coordination of the actions of
decentralized descision makers
2. the pursuit of profits in free markets provides a stimulus to innovation
and rising material living standards
3. free markets permit a decentralization of economic power
Automatic coordination - ✔✔defenders of market economics
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, -argue they're more flexible and adjust quickly to changes
ex. price of oil rises therefore people will use their cars less and use less
heat.
innovation and growth - ✔✔economy grows from new products and
processes creating profits. They attempt to allocate resources to successful
innovations. sometimes works in monopolized or imperfect markets through
creative desctruction
decentralization of power - ✔✔since trade is voluntary, power is constricted
through competitors and new products
Market failure - ✔✔describes a situation in which the free market, in the
absence of government intervention, fails to achieve allocative efficiency
Market power - ✔✔government policy tries to minimize DWL while
encouraging innovation and productivity growth.
governments use competition policy to prevent monopolistic practices.
Externalities - ✔✔an effect on parties not directly involved in the production
or use of a commodity. ex smoking in a restaurant effects everyone
private cost - ✔✔the value of the best alternative use of resources used in
production
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Q&A 100% Solved | Graded A+
basic functions of government - ✔✔when the governments monopoly of
violence is secure and functions with effective restrictions against its
arbitrary use, citizens can safely carry out their ordinary economic social
activities
the case for free markets - ✔✔the informal defence of free markets is
based off three arguments
1. free markets provide automatic coordination of the actions of
decentralized descision makers
2. the pursuit of profits in free markets provides a stimulus to innovation
and rising material living standards
3. free markets permit a decentralization of economic power
Automatic coordination - ✔✔defenders of market economics
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, -argue they're more flexible and adjust quickly to changes
ex. price of oil rises therefore people will use their cars less and use less
heat.
innovation and growth - ✔✔economy grows from new products and
processes creating profits. They attempt to allocate resources to successful
innovations. sometimes works in monopolized or imperfect markets through
creative desctruction
decentralization of power - ✔✔since trade is voluntary, power is constricted
through competitors and new products
Market failure - ✔✔describes a situation in which the free market, in the
absence of government intervention, fails to achieve allocative efficiency
Market power - ✔✔government policy tries to minimize DWL while
encouraging innovation and productivity growth.
governments use competition policy to prevent monopolistic practices.
Externalities - ✔✔an effect on parties not directly involved in the production
or use of a commodity. ex smoking in a restaurant effects everyone
private cost - ✔✔the value of the best alternative use of resources used in
production
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
