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Section 1

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What is the derived demand for gasoline?

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Last updated

7 years ago

Date created

Mar 14, 2020

Cards (33)

Section 1

(33 cards)

What is the derived demand for gasoline?

Front

oil

Back

What are non excludable goods?

Front

more than 1 individual can enjoy good at same time, ex. park

Back

What is derived demand?

Front

demand comes from related product

Back

Give an example of a lump sum tax.

Front

liquor license if you're opening a bar

Back

If the demand for orange juice drops, what will happen to the price of oranges?

Front

drops

Back

What is a positive externality?

Front

social good from consuming a product or service

Back

What is the primary derived demand for orange juice?

Front

oranges

Back

Give an example of a negative externality.

Front

If you don't take care of you lawn, it hurts the prices of the homes in the neighborhood

Back

In the circular flow model, what exchange takes place between the resource market and households?

Front

households receive wages, rent, and interest; resource market receives land, labor, and capital

Back

What are spill over costs or marginal external costs?

Front

it is the social cost from consuming one additional item

Back

How does government control monopolies?

Front

regulation

Back

Give an example of a per unit tax.

Front

tariffs on Chinese goods

Back

What is marginal private benefit?

Front

the satisfaction an individual receives from buying one more item

Back

What are externalities?

Front

when market actions impact others

Back

In the circular flow model, what exchange takes place between firms and product markets?

Front

firms receive revenue; product market produces goods and services

Back

What is marginal private cost?

Front

cost to individual of producing one more item

Back

What is market failure?

Front

failure to achieve desired result

Back

What is underproduction?

Front

not producing enough items

Back

What are causes of market failure and deadweight loses?

Front

government regulations, monopolies, price ceilings, and price floors

Back

What are five tools government can use to fix market failures?

Front

taxes, subsidies, quotas, price ceilings, and price floors

Back

What is the marginal external cost of one more taxicab in NYC?

Front

traffic and pollution

Back

Give an example of a progressive tax.

Front

federal income tax

Back

What is marginal social benefit?

Front

the benefits to society from buying one more item

Back

What is overproduction?

Front

producing too many items

Back

What impact do subsidies have?

Front

lowers prices and increases consumption

Back

What are five types of taxes?

Front

progressive, regressive, flat, lump sum, and per unit

Back

Who is a free-rider?

Front

use non excludable good without paying; ex. going to church without contributing

Back

What do quotas do?

Front

limit production

Back

What are excludable goods?

Front

if you buy an ice cream cone, no one else can buy that ice cream cone

Back

Give an example of a positive externality.

Front

If you improve your lawn, it makes neighborhood look better and raises price of homes

Back

What is marginal social cost?

Front

cost of society of producing one more item

Back

What is a negative externality?

Front

social cost form consuming a product or service

Back

If the demand for gasoline rises, what will happen to the price of a barrel of oil?

Front

goes up

Back