ECON 1 Lecture Notes - Lecture 11: East Los Angeles College, Oligopoly, Externality
Document Summary
Role of government in us economy & government expenditures. Efficiency: efficient allocation of scarce resources, maximum net value, full employment of resources. Equity: equality of opportunity, horizontal equity market failures relating to the goals of achieving fair and evenhanded market exchanges and an acceptable distribution of income. Distributional policies: government economic policies that respond to. Vertical equity: a principle of end-results equity that asks how unequals should be treated; specifically, how much redistribution should society undertake among people with different amounts of income or wealth. Ownership of resources more resources, more paid. Allocational policies: government economic policies that respond to market failures relating to the goal of achieving an efficient use of society"s scarce resources. Start up costs are very large relative to operating costs. Nonexclusive goods affects either consumers" satisfaction or firms" production possibilities. Definition: a third-party effect of a transaction directly. Definition: a good whose benefits are received only by the. Definition: a person who consumes a nonexclusive.
