Final Exam Review

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  1. Last dollar spent on one facet of the budget is the same as the last dollar spent on another facet of the budget
    Equimarginal Principle
  2. A state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off. Is called what?
    Pareto Optimality
  3. Equimarginal Principle in formulation
  4. The mantra of Americans without healthcare
    • 45 million had no insurance
    • 18 million are 18-34
    • 12 million are eligible for public aid and refuse it
    • 1/2 remaining were part time uninsured
  5. In the Health Care Reform what are the 5 elements of Rising Cost
    • 1.Aging Population
    • 2.Expensive Technology
    • 3.Obesity-1/3 Americans obese 10% Medical attributed to obesity
    • 4. Third Party Pay System
    • 5. Legal Costs
  6. What is a Moral Hazard of Health Care
    Moral hazard- young will pay more now that they are required to buy health insurance- low cost premium payers.
  7. What was the issue with Hobby Lobby?
    Didn't want to pay for plan b but paid for 16 other contraception options.
  8. 49 employees vs. 29 hours therefore since 29 hours no insurance. Does employee have to provide insurance?
  9. Who was John Paulson
    He was privy to the bubble collapse and sold his stock and made money before the collapse
  10. What was the Community Reinvestment act of 1977-1994 responsible for
    • Encouraged and or forced certain types of loans
    • predatory loans
    • toxic mortgages
    • mortgage bundling
    • securitization
  11. What are the social effects of owning your own home?
    • Considered good investment
    • encourages community involvement
  12. Was the Government warned by committees of possible collapse?
    Yes warning were ignored
  13. What was the Goverments Involvement with Fannie Mae and Freddie Mac?
    They were Government Sponsored Enterprises
    Bundling Mortgages and Selling them
  14. Mortgage Meltdown was the core issue of the economic downturn.
    Economic Downturn- Sub Prime Loans- Low Qualifications "No Document" loans , Zero Down, Predatory Lenders,
  15. Thomas M was responsible for----
    • Doomsday Theory
    • Population grows the food supply decreases and someday people will not have enough food to eat
    • Problem with this theory is new technology was not considered.
  16. How does the Govt. Help in the Subsidy program?
    • Buy the surplus and encourages overproduction
    • Set Aside Program- 2 plots grow one, govt pays for both 8 million acres go unused
  17. Farm Subsidy Programming
    Used to be everyone farmed for employment, now smaller amount of farmers due to cost. Therefore Govt programs available- Loans,Rent plots of land, Bush Admin- pass big farm programs
  18. Ethanol
    • 1. Positive because its renewable
    • 2. Less Depndant on other Corn Producers

    • Negative
    • Cost of food increases
    • Too much water usage to produce
    • not good for small engines
  19. The Seattle Stomp
    • 16.55 per month to pick up 32 gallon trash can
    • 9.90 for food and yard waste for 96 gallon FREE for glass, paper and metal recycling. Recycling rose with this program and trash decreased. 
    • This led to : when Seattle began charging per bag then people began to reduce bags by compacting or night dumping in commercial bins or neighbors bins to avoid charges.
  20. Negative Externality
    - a cost associated with an economic activity that is paid by third parties; pollution is a negative externality because, for example, someone other than the driver of an automobile bears part of the cost of the car’s exhaust emissions.
  21. NIMBY
    • Not In My Back Yard
    • with property right Europeans do not get paid if oil is found in their yards like Americans and they adopt this attitude. Not in my back yard. They don’t want the government to drill on their lands.
  22. Extra Credit 3 Green Energy Deceptions
    • Wind Power-wind is free/cost of constructing the windmills
    • Solar Power- as long as generating the power equals the cost of doing so
    • Electric Cars- clean running cars, but priced to expensively to harness much use.
Card Set:
Final Exam Review
2015-12-15 23:45:05
Economics of Social Issues
Final Exam for Econ Social Issues
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