Term
| Steps to Thinking Like an Economist |
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Definition
1. Scarcity
2. Rational, Self-Interest
3. Marginal Analysis (Additional Cost vs. Additional Benefit)
4. Opportunity Cost
5. Unintended Effects
6. Scientific Method |
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Term
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Definition
- Productive Efficiency (When average total costs reach their minimum)
- Allocative Efficiency (When marginal cost equals marginal benefit)
- Pareto Efficiency (Improvements must not harm anyone)
- Kaldor-Hicks Efficiency (Gaines of winners outweigh losses to losers)
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Term
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Definition
FV=PV(1+r)^n
PV=FV/(1+r)^n |
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Term
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Definition
EMV = (Possible Financial Outcome)*(Probability of Occurance)+(P2O2)+....+(PnOn)
http://www.dummies.com/how-to/content/how-to-calculate-expected-monetary-value-emv.html
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Term
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Definition
- Judges set precedence which then becomes law
- Lawyers are well versed in case law
- Juries are present at trial
- Attornies act as adversaries
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Term
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Definition
- Judges define code
- Lawyers are well versed in code
- Judges act as an examiner in the court room
- No juries
- Attornies are inquisitors
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Term
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Definition
Lowest - Court of Records
Middle - Appellate Courts
Highest - Supreme Court |
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Term
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Definition
| A fact or facts that enable one to take action against another. |
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Term
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Definition
| Initiates legal action by setting out the facts of the case. |
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Term
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Definition
| A person who brings a case against another in a court of law. |
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Term
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Definition
| An official agreement to resolve a dispute or conflict. |
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Term
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Definition
| Judgement entered into with a trial |
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Term
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Definition
| A trial in which the jury detrmines questions of fact and presents the final judgement |
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Term
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Definition
| Trial by judge as opposed to trial by jury |
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Term
| Perponderance of evidence |
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Definition
| The weight of evidence required in a civil lawsuite to invoke a decision. |
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Term
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Definition
| An opinion, decision, or sentence given by a court of law |
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Term
| Judgement Notwithstanding a Verdict |
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Definition
| Where the presiding judge may overrule the verdict of a jury |
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Term
| Fundamental Questions on Property Rights |
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Definition
- How are property rights established?
- What can be privatly owned?
- What may owners do with their property?
- What are the remedies for violation of property rights?
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Term
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Definition
- Property rights are impersonal.
- Individual has right to excercise rights or not.
- No one can violate your ability to excercise the rights you hold over a property.
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Term
| Steps of Bargining Theory |
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Definition
- Establish Threat Values (What you end up with if no decision is reached)
- Determine the cooperative surplus (The difference between a cooperative outcome anda non-cooperative outcome.)
- Find the terms for distribuition of cooperative surplus.
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Term
| Remedies for Externalities |
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Definition
- Pigovian Tax or Subsidies
- Quotas
- Price Controls
- Coase Theorem
- Assign property rights
- Allow bargaining
- Transaction costs must be lower than bargaining surplus
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Term
| Characteristics of Damages |
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Definition
- Backwards looking
- Monetary compensation for a past wrong done
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Term
| Characteristics of Injunctions |
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Definition
- Forward Looking
- Equitable
- Prohibits or forces upon a party future action
- Forces a change in behavior
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Term
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Definition
| Finds ways to lower bargining prices |
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Term
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Definition
| Assigns property to rights to the entity that values most the property. The unit that will gain the highest social utility from the property |
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Term
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Definition
- Transaction costs (If too high, Coase Theorem will not work)
- Variance (The assumption that your decision will set a presedence)
- Long Run vs Short Run
- Endowment Effects
- Social Norms
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