ECON 103 Lecture Notes - Lecture 25: Economic Surplus, Market Failure, Externality
13 Dec 2018
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No calculators, phones or any electronic devices permitted in the exam: the exam will be cumulative, but a large emphasis will be placed on material since the midterms. In large part, let the lectures be your guide for likely topics. Or too much or too little is being produced or can the total surplus be increased: note: the three tests are used to judge whatever allocation of resources and outputs exist, regardless of how that allocation came about. 12/11/2018: each firm has the incentive to cheat or price cut which leads to the creation of the. Prisoners dilemma in this industry: in the long run the outcome in these industries is ambiguous but it is very likely that the industry have deadweight loss with too little quantity produced and consumed. Poverty: poverty threshold: the annual income below which a family is officially considered poor, poverty rate: the percentage of the population with income below the poverty threshold.
