Term
| institutional arrangements |
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Definition
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Term
| two purposes of microeconomics |
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Definition
1.a explain institutional structures
1.b how do individuals max self-interest, create econ institutions
2. how are scarce resources allocated |
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Term
| mechanism design question |
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Definition
| how can planner design institutions best for society |
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Term
conventional definition
p. 5 |
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Definition
| study of disposal of scarce means. |
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Term
| Normative or welfare economics |
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Definition
deals with what ought to be;
based on value judgments
p. 5 |
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Term
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Definition
deals with what is;
based on objective and verifiable |
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Term
incremental happiness
(incremental utility) |
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Definition
| what each dollar allocated to a child brings |
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Term
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Definition
| distribute dollars until the last dollar spent on each child increases their utility equally |
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Term
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Definition
| why we have current set of institutions |
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Term
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Definition
| how can we design economic institutions to increase economic welfare |
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Term
economic institution
(two definitions) |
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Definition
convention of behavior created by society;
set of rules that constrain behavior (Congress) |
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Term
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Definition
| Economic, Mathematical, Analogies |
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Term
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Definition
| study of games of strategy and the interactions they reveal |
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Term
| Two ways to test econ models |
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Definition
1. Statistical on real world data
2. Experimental investigation with volunteer recruits |
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Term
oligopolistic industry
"olli gop a lee" |
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Definition
| industry in which a small number of firms dominate the market |
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Term
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Definition
| when cheapest way is to have only one firm produce it |
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Term
| three fundamental institutions |
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Definition
| State, Property Rights, Econ Consulting Firms |
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Term
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Definition
| voluntary group to protect private property and enforce promises |
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Term
Why property rights
(basic, advanced) |
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Definition
Basic: protect from robbers
Advanced: enhance economic activities to manage what were common resources |
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