REM 350 - SIMON FRASER UNIVERSITY (Jaccard) EXAM 2024/2025 WITH 100% CORRECT ANSWERS
3 views 0 purchase
Course
REM 350 - SIMON FRASER UNIVERSITY
Institution
REM 350 - SIMON FRASER UNIVERSITY
market failure - correct answers cases where markets will not maximize welfare without government intervention
Economic Rent - correct answers that part of the payment for a factor of production that exceeds the owner's reservation price, the price below which the owner would not supply the fact...
market failure - correct answers ✔✔cases where markets will not maximize welfare without government
intervention
Economic Rent - correct answers ✔✔that part of the payment for a factor of production that exceeds the
owner's reservation price, the price below which the owner would not supply the factor - returns above
the level necessary to invest
Differential Rent (Ricardian Rent) - correct answers ✔✔long-run economic rent earned by the producer
of a resource because of lower production costs relative to the highest cost producer in the market
Scarcity Rent (Hotelling Rent) - correct answers ✔✔long-run economic rent earned by the producer of a
non-renewable resource if the market price reflects anticipation of future high prices caused by scarcity
Monopoly Rent - correct answers ✔✔economic rent earned by an unregulated monopoly producer
(usually a short-run phenomena)
Natural Monopoly - correct answers ✔✔cost of production in an industry is lowest with only one firm, so
it is in society's interest to establish a monopoly - (due to extreme economies-of-scale, one large firm can
serve the entire market at lower average costs than two competing firms)
Policy Solution - correct answers ✔✔create either a private monopoly and regulate it or create a
publicly-owned monopoly (and perhaps regulate). The monopoly is called a utility and its regulator a
utilities commission
Non-Linear Pricing - correct answers ✔✔charging different prices for consumption of different quantities
and at different times (includes time-of-use pricing and block pricing), but setting average prices to
prevent monopoly rents (regulated monopoly only earns normal returns)
, Time-of-use Pricing - correct answers ✔✔non-linear pricing that sets different prices at different times of
day or different seasons to reflect cost of providing energy and capacity at specific times
Block Pricing - correct answers ✔✔(stepped rates) - non-linear pricing that charges block prices that rise
or fall to reflect rising or falling costs with changes in total demand
Negative Environmental Externality - correct answers ✔✔a harm or risk from production or consumption
of a good that is not included in its price
* usually occurs where property rights are not well-defined, as with common property resources like air,
ocean, atmosphere;
* result is to underprice (and thus overconsume) the good
Policy Solution (negative externality) - correct answers ✔✔charge producer the monetary value of the
harm (taxes, tradable permits), which will increase the market price. Sometimes regulations can produce
a similar outcome
Social Cost of Carbon Modeling Mechanics - correct answers ✔✔The net present value of future global
climate change impacts from one additional metric ton of CO2 emitted to the atmosphere at a particular
point in time
Social Cost of Carbon (SCC) - correct answers ✔✔monetary estimate of incremental damages of an extra
unit of carbon pollution in each time period.
Public Good - correct answers ✔✔good or service characterized by non-exclusivity and non-rivalry -
hence underprovided by private markets (eg, lighthouse, national defense, pristine nature park)
Can be characterized by positive externalities
Common Property Resource - correct answers ✔✔natural resource that is characterized by non-
exclusivity and rivalry (eg, ocean fishery, air, atmosphere)
Can be characterized by negative externalities
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller QUILLSKY. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.99. You're not tied to anything after your purchase.
