Changes

Jump to navigation Jump to search

Economics Lecture Twelve (view source)

Revision as of 22:36, November 22, 2009

918 bytes added ,  22:36, November 22, 2009
more review
Line 1: Line 1:  
{{Economics_Lectures}}
 
{{Economics_Lectures}}
   −
address student question about whether "economic rent" equals the "deadweight loss."  "Economic rent" is a type of deadweight loss.  Taxes also cause deadweight loss.  Define "rent seeking" behavior, a term first coined in 1967 by Tullock.
+
address student question about whether "economic rent" equals the "deadweight loss."  "Economic rent" is a type of deadweight loss.  Taxes can also cause deadweight loss.  Define "rent seeking" behavior, a term first coined in 1967 by Tullock. Note that deadweight loss also includes the lost producer surplus.
 +
 
 +
CLEP:  slightly less than 10% of the questions concern graphs.  Here are some graphical questions to be able to answer:
 +
 
 +
*consumer surplus (only occurs where demand curve is higher than price paid, because buyers paid less than they would have)
 +
*curves for monopolist (no supply curve; output set by MC=MR, price sent by demand curve at that output)
 +
*deadweight loss: the lost consumer surplus AND (in the case of a tax) the lost producer surplus
 +
*optimal market price:  where supply meets demand, or (for a monopolist that has no supply curve) where MC intersects demand curve (MC=P)
 +
*comparing price and curves for ATC, AVC and MC, and realizing that maximum profits occur when MC=P; the firm shuts down in the long run when ATC>P; and the firm shuts down in the short run when AVC>P, but keeps operating in the short run when AVC<P but ATC>P
    
<add: Lorenz curve - an obscure topic on CLEP worth one question>
 
<add: Lorenz curve - an obscure topic on CLEP worth one question>
Aschlafly
Anthony, Irenaeus, Siteadmin, apieditor, Bureaucrats, Check users, nsAm_Govt_101RO, nsAm_Govt_101RW, nsAm_Govt_101_ta, nsJudgesRO, nsJudgesRW, nsJudges_talkRO, nsJudges_talkRW, nsTeam2RO, nsTeam2RW, nsTeam2_talkRO, nsTeam2_talkRW, oversight, Administrators
126,204

edits

Retrieved from "https://www.conservapedia.com/Special:MobileDiff/723027"

Navigation menu