General Concepts
Quasi public goods
The market for quasi-public goods is an important example of an incomplete market. A quasi-public good is one…
August 31, 2021 · Taylor EmmaAuthor: Taylor Emma
A senior editor for The Mars that left the company to join the team of SenseCentral as a news editor and content creator. An artist by nature who enjoys video games, guitars, action figures, cooking, painting, drawing and good music.
General Concepts
Incomplete markets
An incomplete market is one where some of the necessary conditions for market formation exist, but not all…
August 31, 2021 · Taylor EmmaGeneral Concepts
Pure public goods
The market mechanism is likely to fail to supply pure public goods because entrepreneurs are unlikely to enter…
August 31, 2021 · Taylor EmmaGeneral Concepts
Missing markets
A significant market failure is the failure to produce some goods and services, despite being needed or wanted.…
August 31, 2021 · Taylor EmmaGeneral Concepts
Index numbers
Economists frequently use index numbers when making comparisons over time. An index starts in a given year, the base…
August 31, 2021 · Taylor EmmaGeneral Concepts
Marginal analysis
Economic decisions are taken in a marginal way, which means that decisions to produce, or consume, are made one at…
August 31, 2021 · Taylor EmmaGeneral Concepts
Increasing opportunity cost
Opportunity cost can be thought of in terms of how decisions to increase the production of an extra,…
August 31, 2021 · Taylor EmmaGeneral Concepts
Pareto efficiency
Any point on a PPF, such as points ‘A’ and ‘B’, is said to be efficient and indicates…
August 31, 2021 · Taylor EmmaGeneral Concepts
Interpreting PPFs
Firstly, we can describe the opportunity cost to Mythica of producing a given output of computers or textbooks. For example, If Mythica…
August 31, 2021 · Taylor EmmaGeneral Concepts
Production possibility frontiers
An opportunity cost will usually arise whenever an economic agent chooses between alternative ways of allocating scarce resources.…
August 31, 2021 · Taylor Emma