Help
Options
Term
Law of Unintended Consequences
click to flip
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't know
Term
Primary Effect
Remaining cards (29)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Econ Ch 1
| Term | Definition |
|---|---|
| Law of Unintended Consequences | When smth is passed, there will be unanticipated negative consequences |
| Primary Effect | Intended effect of a policy |
| Secondary Effect | How ppl affected by policy change their behavior |
| How does policy act when the secondary effect is greater than the primary? | The policy increases the problem it was meant to solve |
| How does policy act when the secondary effect is less than the primary? | Policy solves the problem (at a cost) |
| People behave certain ways for what reasons? | Scarcity, rationality, and self-interest |
| Scarcity is also known as? | Economic goods |
| Scarcity | Amount of good wanted is more than what exists |
| Rationality | Ability to set a well-defined goal and achieve it |
| Does a rational person move towards or away from their goal? | Towards |
| What type of person moves away from their goal? | Irrational |
| Self-interest | Care more about your own goals than that of others |
| What is the total economic surplus equation? | Total benefits-total cost |
| Rule for Rationality | Total economic surplus is maximized |
| Rule of Rationality is also known as? | Cost benefit principle |
| Incentive | When a cost/benefit is changed for behavior |
| Marginal Benefit | Additional benefit when consuming one more unit of good |
| Marginal Cost | Additional cost increased by producing one more unit of good |
| When is economic surplus maximized? | When marginal benefit equals marginal cost |
| Law of Diminishing Marginal Benefit | The more consumption of a good, the less total benefit,,,benefits of more consumption increase at a decreasing relationship |
| What is the equation for marginal benefit? | Change in total benefit over change in consumption |
| Law of Increasing Marginal Cost | Work increases for increase in benefit |
| What is the equation for marginal cost? | Change in total cost over change in consumption |
| Microeconomics | Interactions between buyers and sellers in indiv. markets |
| Macroeconomics | Economy as a whole (ex: inflation rate) |
| Positive Statements | Shown true or false based on objective facts |
| What type of statement can fair minded people agree on? | Positive |
| Normative Statements | Based on subjective value judgements of right or wrong |
| "is" and "will" go with what type of statement? | Positive |
| "aught" and "should" go with what type of statement? | Normative |
Created by:
MikalahQuillen
Popular Economics sets