Big Term Review

Question 1

What is tragedy cost

Answer 1

Economic dilemma where every individual acting in their own interest brings ruin to the group collectively

Question 2

Common law

Answer 2

English law derived from the customs and norms established through judicial precedent prior rulings determine current law

Question 3

Sharecropping

Answer 3

Agricultural production arrangement where a tenant uses a landowners land in return for a share of the crops produced

Question 4

Public good

Answer 4

A good that is non-excludable and non-rivalrous. Provision of public goods is likely hampered by the free-rider problem

Question 5

Gold rush

Answer 5

Rapid movement of people and capital to an area when gold is discovered. The first gold rush occurred in 1848-49 California

Question 6

Inflation

Answer 6

General increase in prices and decrease in the purchasing power of money over time

Question 7

Riparian doctrine

Answer 7

Method of allocating water under English common law where all adjacent landowners share equal rights to water

Question 8

Dust Bowl

Answer 8

A period of a severe dust storms in the American and Canadian prairies in the 1930s

Question 9

New Deal

Answer 9

A series of programs instituted by president franklin Roosevelt in response to the Great Depression which increased government investment in infrastructure and the social safety net programs included social security rural electrification administration civilian conservation corps Tennessee valley authority public works administration and works progress administration

Question 10

Club good

Answer 10

A good that is potentially excludable but non-rivalrous. Examples include movie theaters, sporting events, and parks

Question 11

Infrastructure

Answer 11

Facilities, networks, and systems needed for the operation of a society or enterprise; examples include buildings, roads, power grids, and fiber optic cables

Question 12

Benefit cost analysis

Answer 12

A systematic approach to estimating the strengths and weaknesses of a proposed action by placing them in common terms such as dollars and summing the benefits then subtracting the costs

Question 13

Market failure

Answer 13

A situation when the allocation of goods and services is not efficient, for instance when rio much of a good (pollution) or too little of a good(clean air) is provided by the free market

Question 14

Common pool resource

Answer 14

Resources which are rivalrous but are not excludable, perhaps due to high coast of preventing access

Question 15

Opportunity cost

Answer 15

The loss of potential gain from other alternatives when one alternative is chosen

Question 16

Common property

Answer 16

A thing or things held jointly

Question 17

Free-riding

Answer 17

Problem is a market failure that occurs when people take advantage of being able to use a common resource, or collective food, without paying for it. ( same as citizens of a country utilize public goods without paying their fair share in taxes

Question 18

Shortage

Answer 18

A state or situation in which something needed cannot be obtain d in sufficient amounts

Question 19

Appropriation rights doctrine

Answer 19

There legal doctrine that the first person to take a quantity of water from a water source for “beneficial use”-agricultural, industrial or household- has the to right to continue to the use that quantity of water for that purpose