tailieunhanh - Lecture Principles of Microeconomics: Chapter 12 - James D. Miller

Lecture Principles of Microeconomics - Chapter 12: Government imperfections. After reading this chapter, you should be able to answer the following questions: What is public choice theory? How do government officials behave? How do politicians take away from the weak? How do politicians destroy the wealth of society? How does corruption affect the wealth of society? What can reduce corruption? What are the problems with democracies? | Chapter 12 Government Imperfections McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved. Learning Objectives What is public choice theory? How do government officials behave? How do politicians take away from the weak? How do politicians destroy the wealth of society? How does corruption affect the wealth of society? What can reduce corruption? What are the problems with democracies? 12- Public Choice Theory Public choice theory is the economic study of government. It examines how government officials and voters choose. 12- A Fictional Tale Decisions for a congressman: Which tariff to vote for? Which group of population to choose to cut funding from? How to allocate licenses? How to protect jobs in your district? Every congressman tends to favor powerful interest groups and puts his voters interest above the needs for the country. 12- Government Officials Economists assume that government officials act in their own . | Chapter 12 Government Imperfections McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved. Learning Objectives What is public choice theory? How do government officials behave? How do politicians take away from the weak? How do politicians destroy the wealth of society? How does corruption affect the wealth of society? What can reduce corruption? What are the problems with democracies? 12- Public Choice Theory Public choice theory is the economic study of government. It examines how government officials and voters choose. 12- A Fictional Tale Decisions for a congressman: Which tariff to vote for? Which group of population to choose to cut funding from? How to allocate licenses? How to protect jobs in your district? Every congressman tends to favor powerful interest groups and puts his voters interest above the needs for the country. 12- Government Officials Economists assume that government officials act in their own interests. Government officials are as self-interested as businesspeople. However, there is no invisible hand guiding politicians. 12- Taking From the Weak in Dictatorships To maintain power many dictators follow a three-step formula: Take wealth from some disfavored group. Build support among some favored group by giving them the wealth acquired through the earlier step. Suppress or kill the disfavored group so they can’t harm the dictator. 12- Taking From the Weak in Democracies In modern democracies, even disfavored groups can vote. Politicians in democracies use a similar formula. Take wealth from politically inactive groups. Build support among politically active groups by giving them the wealth acquired through the earlier step. Politically active groups always vote and contribute to campaigns. In the ., the elderly vote is a much higher percentage than other demographic groups. 12- Concentrated vs. Diffused Interest Groups Generally, producers are the .

• Kinh tế học
• Principles of Microeconomics
• Lecture Principles of Microeconomics
• Government imperfections
• Public choice theory
• Government officials
• Problems with democracies
• Ten principles of economics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Market forces
• Supply and demand
• Market economies
• Competitive markets
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Market failures
• Negative externalities
• Positive externalities
• Market inefficiency
• Public goods
• Common resources
• Types of goods
• Cost benefit analysis
• Tax system
• Federal government
• Marginal tax rate
• Budget surplus
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Firms in competitive markets
• Average revenue
• Marginal revenue
• Sunk costs
• Monopoly resources
• Government created monopolies
• Natural monopolies
• Monopoly’s revenue
• Monopolistic competition
• Nash equilibrium
• Equilibrium for oligopoly
• Game theory
• Long run equilibrium
• Perfect competition
• Production possibility frontier
• Opportunity cost
• Rational people
• Indirect effects
• Law of demand
• Factors change demand
• Law of supply
• Market demand
• Demand intersect
• Demand determine prices
• Change in demand
• Change in supply
• Elastic demand curve
• Policy analysis with supply
• Policy analysis with demand
• Wealth creation
• Production cost
• Total surplus
• International trade
• Additional benefits of trade
• Average costs
• Break even price
• Increasing marginal costs
• Long run analysis
• Firms profit graphically
• Accounting profit
• Market effectiveness
• Monopolist pricing
• Price discrimination
• Antitrust laws
• Disruptive innovation in oligopolies
• Predatory pricing