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