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Econ Y1 > PSE > Flashcards

PSE Flashcards

(58 cards)

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1
Q

Social Capital

A

Ostrom

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2
Q

Ideological underpinning

A

Blyth

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3
Q

Malleability of ideas

A

Schmidt

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4
Q

Types of efficiency

A

Exchange, production, production mix

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5
Q

Features of competitive markets

A

PILFH

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6
Q

1st fundamental theorem of welfare economics

A

Competitive markets = Pareto efficient outcome

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7
Q

2nd fundamental theorem of welfare economics

A

Even with no market failure, there is still inequality

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8
Q

Neoclassical: markets are the most democratic

A

Dorfman

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9
Q

Preference and indifference curve

A

Curving lines with budget constraint

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10
Q

Firms are profitable when

A

MC = MR

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11
Q

Institutional economics

A

Critical of perfect markets, countries all developed differently

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12
Q

Institutional: Critique of self-interest and wasted consumer utility

A

Veblen

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13
Q

Evolutionary: Mission driven and risk taking states

A

Mazzacuto

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14
Q

Evolutionary Mazzacuto’s examples

A

Energy dept loan to Tesla (+) and Solyndra (-)

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15
Q

Samuelson Rule

A

MRS = MRT (the sum of what we all give up = the cost of producing that unit)

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16
Q

Bad K: Instability of IOs and no world government

A

Keohane

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17
Q

Good K: IOs are to some extent useful

A

Krasner

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18
Q

Helped free trade and put economics over politics

A

GATT

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19
Q

Types of externality

A

Positive / negative, consumption / production

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20
Q

Externality graph

A

Marginal social benefit going down, perpendicular to social cost (higher) and private cost (lower), deadweight loss in the middle

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21
Q

Private solutions to externalities

A

Internalise, coase theorem, legal

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22
Q

Public solutions to externalities

A

TSPR

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23
Q

Types of taxes and explain

A

Coasian (within parties), pigouvian (govt correcting the price)

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24
Q

Critiques of coarse theorem

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A

Stiglitz - undefined property rights, imperfect information, transaction costs, limited ability to unionise

25
Subsidies
Reduce the MPC of polluting
26
Regulation
Maor - it's too difficult and slows innovation
27
Community based solutions to externalities
Ostrom and polycentric systems (shame)
28
Changing market power
Then - the ability to raise prices Now - the ability for a group to control prices and other aspects of the market
29
Sources of market power
GMMR
30
Monopoly graph
Cost / demand intersecting as normal, with marginal revenue undercutting demand, and the price being where demand sits above the intersection between MR and MC
31
Elastic demand vs inelastic demand
If price goes up, elastic demand will decrease. Inelastic won't.
32
[In]elastic demand graph
Elastic: Demand only steadily decreasing with MR as MC curves up Inelastic: Demand dramatically decreasing with MR as MC curves up. Price is higher
33
What is a monopsony and who
Manning - only one buy (local labour market)
34
Difference between typical and new monopolies and who
Rikap Traditional: vertical concentration, centralisation through M&A, tangible assests New: horizontal concentration through outsourcing, centralisation through data, intangible assets
35
Oligopolies and who
Adam Smith - price fixing (Car manufactures and Adblue)
36
Autarky
A state of no international trade
37
Tariff graph
Supply demand, which two straight lines below the intersect. Top line - price with tariff Bottom line - world price Imports are restricted to where tariff hits supply/demand
38
Balance of payment
Credits and debits Credits - out Debits - in There is a debit for every credit Assets - outward investment Liabilities - inward investment
39
Factor trade model
Stopler-samuelson Factors are mobile Class conflict when there is trade
40
Sector trade model
Ricardo-viner Factors are immobile Industry conflict when there is trade
41
Two new trade theories
New - monopolistic competition (similar-similar) New new - big firms are better at international trade as there are costs involved
42
Keynesian Economics
There is a positive and appropriate role for govt intervention in the unstable capitalist system, as wage reductions cause an economic downturn
43
Keynes' solution
Increase public spending
44
Keynesian IO
IMF
45
IS Curve
Interest Rate / Output Higher public spending = higher curve Higher taxes = lower curve
46
LM Curve
Interest Rate / Output Straight line
47
IS-LM Curve
Interest Rate / Output IS curve intersecting with straight LM line, that is equilibrium
48
What does the IS-LM Curve tell us
As interest rates go up, output goes down
49
Two austerity thinkers
Krugman = bad Reinhart = good
50
Theory around the Phillips Curve
There is a relationship between unemployment and inflation
51
Phillips Curve graph
Inflation / unemployment, curve
52
Was the Phillips Curve correct? (Who)
Fridman said its not correct - anticipatory wage growth leads to spiral inflation, there is a wage-price spiral
53
Example of the Phillips Curve being wrong
Flattening Phillips Curve led to the reduction in spending from the 1970s onward, and now there is murky relationship between inflation / wage growth and unemployment
54
Net Present Value
Revenue year on year / 1 - the discount factor Discount factor is typically = interest rates for govt borrowing - inflation
55
Critiques of the cost-benefit analysis (CBA)
OECD say it's not everything, and a multi-criteria analysis often evaluates more
56
What is a regulatory impact assessment (RIA)?
CBA + a few key questions like why THIS policy
57
Who bears the burden of tax?
Formal incidence - who is legally obliged to pay the tax Effective incidence - who actually bears the burden (VAT and consumers, VAT is an indirect tax)
58
Can you avoid tax?
Yes, if it's distortionary (eg. window tax)

Econ Y1 (2 decks)

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