[ECON 200] - Midterm Exam Guide - Comprehensive Notes for the exam (26 pages long!)
5 Oct 2016
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Ex: once rent is paid, that dollar amount is no longer recoverable - it is "sunk. " Efficiency describes a situation in which resources are used in the most productive way possible to produce the goods and services that have the greatest total value to society. Using the demand curve to measure consumer surplus. Using the supply curve to measure producer surplus. A price ceiling does not always affect the market outcome. If the floor is set above the equilibrium price, it is said to be nonbinding. The interest rate on payday loans are very high. Implies an annual percentage rate (apr) of 391 percent. If you are unable to repay the loan when it is due, the lender might give you a new loan that includes the interest on the first loan. Borrowers can easily get caught in a nasty trap.
