C H A P T ER
TTcfw_E ROBTEM P OF EqCHANGE
ln C h rp l e f - l q c a s s u mc d h . . ri s re .e o f f efectl y c onpeti ri ve arkel s e ve l hough L n Ne h a d n o i d e r h o f s u c h m rrk c tsd evei opedn o uf f fj nri ri l e s oci et) \ V e n .rde
I. Utility Let us begin with a fundamental question: what is utility? Historical definitions include the capacity of a good to satisfy a want and happiness itself. The commonly accepted modern definition is a preference ordering over states of the world.
Sebastian Kim Given the external and decision-making cost framework, would we want an inclusive (high % of population must agree) or exclusive (low % of population must agree) rule to make changes in: a) Drug policy b) The definition of marriage c) Enviro
Social welfare functions
The interest of the community then is
who comDose lt'
what? The sum of the interests of the
Whereas one can speak ofrlepositive theory ofpublic choice, based upon economic
Voting Rules and Social Choice Fall 2008 M. Roth Quiz One 1) In mathematical notation, what are the THREE major components for global efficiency in a two-person, two-good production economy (i.e. the great big equation which must hold)? What does each of
Practice Questions, Chapter 7 EC 309 1. The formula for the steady-state ratio of capital to labor (k*), with no population growth or technological change, is s: A) divided by the depreciation rate. B) multiplied by the depreciation rate. C) divided by th
GINERcfw_I IQLILIBRIUM,cfw_\D THB ORIGINSOF TIIE FREI.MARKIT
15.1 THE RIE-TIA,RKLT F AIIGUMENT
The free-market aryunent stans with the assunplion that al one point ilr Line thereis an existinge conoinyw ith a g iven s lock o f c apital a