ECON 320, Fall 2015, Exam 2 Review Study Sheet:
Know graphs and be able to work with sustainable yield analysis (PS 3)
Know graphs (both S&D of output, and “market” for emissions) and be able to work
with analysis of externalities (PS 4)
Know graphs and be able to work with analysis of public goods (PS 4)
Re--read notes (from class and required events), chapters of texts, and anything else
from assignment schedule (Anielski, Layard)
Terms
Daly Ch. 7
“empty world” vs. “full world”
Hubbert curve
Daly Ch. 10 and Tietenberg Ch. 4
market failure
characteristics of market goods
congestibility
open access problem
pure public goods
marginal social costs
marginal private costs
negative externality or external cost
positive externality or external benefit
Coase theorem
transaction costs
inter-temporal discounting
efficient property right (exclusive, transferable, enforceable)
consumer surplus
producer surplus
deadweight loss
external diseconomy (same as negative externality above)
external economy (same as positive externality above)
free rider
DF Ch. 13
Homo economicus, Homo reciprocans, Homo communicus
Smith’s views on human behavior
Darwin’s views on human behavior
Easterlin Paradox
Procedural utility (“doing”) and identity (“being”) vs utility of “having”
"Keeping up with Joneses"
Imperfect Rationality
Behavioral economics
Layard
Positional or status goods
Social comparison
Habituation
Hedonic treadmill
MU of money
Big Seven factors