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Flashcards in Chapter 2 Deck (15):
1

The Calculation Problem

The problem of the utilization of knowledge which is never given to anyone in it's totality

2

Public Choice School

Expresses how self-interested politicians and government officials make deicsions

3

Fallacy of Division

Thinking what is true for a group must be true for all the individuals of a group

4

Authoritarian (choice)

a single individual or governing body makes decisions for the populace

5

Democratic (choice)

Authoritarian choice made by individuals voting

6

Government administrative costs

Sacrifice to pay gov. employees to monitor regulatory programs and enforce

7

Compliance Cost

How much must be sacrificed to follow regulation

8

Rent Seeking

individuals extending resources to prosper by using regulatory and legal systems

9

Bootleggers and Baptists

2 groups fighting for regulations for two separate reasons because they both benefit

10

Status Quo Minus Fallacy

we consider the status quo, eliminate one element of it,and conjure that this removed element has an effect we'll never be compensated for

11

Rational Ignorance

when the cost of educating yourself outweigh the benefits of having the knowlegde

12

Law of Unintended Consequences

unseen costs to a decision

13

What must the State know in order to manage the economy as well as free markets?

-Everyone's preferences

-Scarcity of Resources

-Most Efficient Way of Producing

14

Spontaneous Order

individuals organize themselves and interact efficiently if they are given the freedom to do so

15

Curious Task of Economics

Demonstrating to men how little they know about designing economies