Examlex
A price below the equilibrium price will cause a reduction in consumer surplus.
Principal-Agent Problem
The principal-agent problem occurs when there is a conflict of interest between a principal (owner or shareholder) and an agent (manager or executive) due to differing goals, with the agent potentially making decisions that benefit themselves at the expense of the principal.
Public Choice
A branch of economics that studies the decision-making processes of government entities and its impact on economic policy.
Regulatory Capture
A situation where regulatory agencies are dominated by the interests of the industries they are supposed to regulate, rather than serving the public interest.
Special-Interest Effect
The scenario where a small group gains significant benefits from a public policy or action, often at the expense of the larger population.
Q47: (Table: Choice with Uncertainty) Look at the
Q82: Domingo has total wealth of $500,000 composed
Q88: If there is an increase in demand,
Q116: (Figure: Consumer Surplus II) Look at the
Q130: Risk-averse individuals are willing to make deals
Q176: If the price is above the equilibrium
Q204: If the minimum wage is a binding
Q219: (Figure: The Demand and Supply of Wheat)
Q252: (Figure: Demand and Supply of Gasoline) Look
Q258: (Figure: The DVD Rental Market) Look at