Exam (elaborations)
Econ 201 Questions And Answers Graded A+
- Course
- Institution
Econ 201 Questions And Answers Graded A+...
[Show more]
Content preview
Econ 201 Questions And Answers Graded A+First Welfare Theorem - Solution -Perfectly Competitive Market All goods sold are
somewhat equal; at equal prices)
-There are no externalities
-Pareto Efficient
Collusion - Solution An event where agents in a game reach an agreement over
strategies to play
Payoff Matrix - Solution A diagrammatic representation of a game which shows all the
possible strategies for each player/ all possible outcomes and payoffs.
Prisoners Dilemma - Answer A cause in which individually rational behaviour leads to a
jointly inefficient outcome
Nash Equilibrium - Answer A set of strategies (one for each player) in which each
players strategy is the best option for that player, given the chosen strategy of the other
player
Tit-For-Tat Strategy - Answer A strategy in which a player follows of course of action
consistent with the other players choices e.g. if one player does not cooperate, the
other player will retaliate
Dominant Strategy - Answer A players best choice, if it exists, regardless of his
opponents strategy
Inelastic - Answer Price change does not effect quantity e.g. insulin
, Elastic - Answer Price change effects quantity e.g. food
Determinants of Demand - Answer -prices of other goods
-income
-# of buyers
-consumer tastes
Determinants of Supply - Answer -Price of input
-price of labor
-# of sellers
-technology
Normal/Luxury goods - Answer Income goes up, demand increases e.g. food
Inferior Goods - Answer Income goes up, demand decreases e.g. public transportation
Elastic Demand - Answer Good with many substitutes
Regressive Tax - Answer Takes a larger tax from low income earners then high income
Progressie Tax - Ans Takes a larger tax from high income earners then low
Supply/Demand Shift Left - Ans Quantity falls; Price stays Ambiguous
Supply/Demand Shift Right - Ans Quantity rises; Price stays ambiguous
Price Floor - Ans Price control on how low a price can be charged to a product. When
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 Easton. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67163 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now