Advanced Concepts Flashcards
(11 cards)
1
Q
The relationship between tax and elasticity
A
The way taxes are distributed between the buyers and the sellers are related to the correlation between supply and demand elasiticity levels
Example: The quantity of fuel that is consumed after tax is can’t be higher than the quantity of fuel that was consumed before the tax
2
Q
International Trade
A
- Increased variety of goods
- Lower costs through economies of scale - some goods can be produced at low cost only if they are produced in large quantities—a phenomenon called economies of scale.
- Increased competition à makes it harder for one company to monopolize
- Enhanced flow of ideas
3
Q
The Case Against International Trade
A
4
Q
Response to externalities
A
5
Q
Coase Theorem
A
6
Q
The free rider problem
A
7
Q
Cost-Benefit Analysis
A
8
Q
Tragedy of the Commons
A
9
Q
Diminishing Marginal Product
A
10
Q
Efficient scale
A
11
Q
A
