ECON 3535 1st Edition Lecture 7Current LectureCurrent Event: Government released the 4th quarter real GDP report today- 3rd quarter = 5% annual rate- 4th quarter = 2.6% annual rateo 2014: 2.4% o average growth 2010-2013 = 2.2% 1990s = 3.4%- It’s good that the growth rate has decreased because it allows the economy to avoid inflation, and the unemployment will still declineBenefits- revealed preference- stated preference surveysCost- survey approach survey of project- engineering approach cost-based on current technology Property Rights- consumer surplus: willingness to pay versus the price actually paido difference between what consumers are willing to pay and the price paid- price discrimination: isolation of what you’re willing to pay and change it according to the situation to a higher priceProducer Surplus = difference between price and supply curve These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- total net benefit = consumer surplus + producer surplus- property rights = ownership- open access resources = no ownership; no restrictions on access- ex: park- can result in overuse tragedy of the commons- public goods
View Full Document