Micro Final

Question 1

Name the five trends in market power

Answer 1

1) Higher estimated markups
2) More concentrated ownership
3) Higher industry concentration
4) Many mergers
5) Rise of superstar firms

Question 2

Name the six types of antitrust policy

Answer 2

Main areas
1) Price fixing
2) Merger policy
3) Abuse of dominant position

Other
1) Market regulation
2) Firm regulation
3) Consumer protection

Question 3

Name the Emission Accounting Equation and the climate strategies that follow from it

Answer 3

C1 = C0 + E*y - R
- C1, C0: level of CO2
- E: level of economic activity
- y: CO2 emissions per unit of economic activity
- R: CO2 removed from the atmosphere

Reduce E, Reduce y, Increase R

Question 4

Name the three measures of inequality

Answer 4

1) Income
2) Wealth
3) Consumption

Question 5

Name the six sources of income inequality

Answer 5

1) Distribution of capital
2) Monopsony power
3) Technical change which favors skilled workers
4) Globalization
5) Decline of unions
6) Superstar effect

Question 6

Name the three motives for “caring for each other”

Answer 6

1) Altruism
Just being nice
2) Intrinsic reciprocity
Getting a kick out of treating people well who treated you well in the past
3) Instrumental reciprocity
Getting something in return later

Question 7

Name the four political thought ideologies

Answer 7

1) Libertarians
2) Market-based, socially concerned
3) Regulated markets, socially concerned
4) Socialists

Question 8

Name the three types of social capital

Answer 8

1) Economic connectedness
2) Cohesiveness
3) Civil engagement