{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Lecture 14 _Mar 9_

Lecture 14 _Mar 9_ - Economics 100A Lecture#14 Tuesday Mar...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Economics 100A Lecture #14: Tuesday, Mar. 9 1) Government intervention 2) Analysis of an excise tax 3) Consumer surplus, and CV and EV 4) Producer surplus and economic rent 5) Social surplus, social optimum and dead weight loss
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2 (1) Gov’t intervention The visible hand meets the invisible hand Price: Taxes: income, sales, payroll, estate, corporate, tariffs, etc. Subsidies: Price control: ceilings and floors Quantity: Production quotas: agricultural commodities Stockpiling: crude oil reserve Import and export quotas Quality: Product safety: consumer products (CPSC), drugs (FDA) Competence in occupations: state licensing boards Pollution and hazardous materials: EPA Workplace conditions: OSHA
Background image of page 2
3 Gov’t intervention (cont’d) Industry structure Entry restrictions: taxis, cable, radio spectrum (FCC) Exit conditions: airline and train routes Merger policy: FTC, DOJ Information (social regulation) Product labeling: alcohol, cigarettes, drugs, nutrition (FDA) Product performance: auto mileage and appliance efficiency (EPA), washing instructions Financial disclosure (e.g., SEC)
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon