Unagi week

Who was Garrett Hardin?

Who was Elinor Ostrom?

Outline the reason why analytically it makes sense to shift the supply curve to the
left when an indirect tax is imposed?

A minimum price on a number of agricultural products has been imposed in Kerala,

India. Our static, neoclassical analysis, leads us to conclude that a welfare loss will
result. Are there any considerations involved that our analytical framework does not
capture and which may explain why governments do after all set price floors on
farm goods? Very briefly, outline two such considerations.

PED is necessarily a negative number. Why? (very brief response)

YED is necessarily a positive number. Comment (very briefly)

Nikki claims that normal profit is an economic cost of production. Do you agree?
(brief and to the point)

Who is George Akerlof, who is he married to and why she also famous?

Why do we know of Arthur Cecil Pigou?

In what sense is having stationed outside Capps a teacher of the subject being
tested inside Capps an example of moral hazard?

Why would the market for used 2020 A3 AUDIs ‘thin out’ if no ‘screening’ and
‘signaling’ occur?

Using the used 2020 A3 AUDI example, in what sense is there a market failure?

What assumptions do we use to construct a PPC.

A market is considered perfectly competitive if three plus two assumptions are

satisfied. What are these 3+2 assumptions?

It follows from which of these 3+2 assumptions that such firms are ‘price takers’?

State the law of diminishing marginal utility.

State the law of diminishing marginal returns.

Does the law of diminishing marginal returns hold in the long run?

Why is the marginal cost curve upward sloping after a certain level of output?

What are some necessary conditions that according to Lin (Elinor Ostrom) have to
hold for a community to be able to devise a framework of use that will permit
sustainable harvesting of a common pool resource?

C. H. Ziogas HL IB Econ Unagi series

The Maine Lobstermen's Association (MLA) represents the interests of the state's
lobster fishermen and it has developed a set of rules and regulations, known as the
Maine Lobster Conservation Management Plan, designed to ensure the sustainability
of the lobster fishery. List 3 key elements of this plan.

Why do cows in the Alps tussle?

How does the free rider problem enter the discussion of public goods?

Define the term ‘marginal social benefits’

‘If demand is price inelastic then Nico should decrease the price of haircuts as his
revenues will increase’. Comment.

‘The demand for χαρτί υγείας Regina Lux Super Soft is probably price inelastic’, said
Ms. Beba. Comment.

Provide a single definition of the term ‘long run’ that can be used when discussing
price elasticity of demand but also price elasticity of supply.

Define producer surplus

When will a surplus appear in a market?

What do we mean by the term ‘circular economy’? {hint: go to glossary file & p.19}

What do Richard Thaler, George Akerlof, Elinor Ostrom and Joe Stiglitz have in
common (beyond all teaching or having taught in US universities)?

Why does efficiency require that for the last unit produced / consumed, MSB should
equal MSC? What if MSB is greater than MSC? Why isn’t that ‘good’?

I had too many fried mushroom ‘chips’ with garlic mayo last night at Fyki-Fyki.
What is that an example of in behavioral economics?

Lately, many Greeks are asking for the services of civil engineers and are also
buying earthquake insurance. This is an example of which bias in behavioral
economics?

Provide an example of ‘restricted choice’ and of mandated choice’ that the ‘choice
architect’ in the IBO effectively had in mind when originally designing the Diploma
Program curriculum for you

What are primary commodities? Explain reasons for which we typically expect low
PED and low PES for such products.

The term carbon pricing refers to what?

Describe the policy initiative that Scotland, Wales and Ireland adopted in an
attempt to decrease alcohol consumption.

Describe the initiative that England has taken in its attempt to tackle obesity?

C. H. Ziogas HL IB Econ Unagi series

What does the term ‘sustainability’ mean? What is its relationship to logging or
fishing?

Provide examples of how asymmetric information in the market was dealt with in
(a) ancient Athens (b) modern Greece

Provide examples of cap and trade schemes

Provide examples of carbon taxes adopted in different countries. Why does the size
of the tax matter?

Provide examples of regulations in any country of your choice to mitigate (any type
of) polluting activities

Provide examples of international agreements (a) to curb global warming (b) to

prevent depletion of (particular) fish stocks (c) to prevent deforestation

List some private and some social benefits of university education?

What are some gender specific benefits of sending a little girl to school?

Why is the demand curve a firm faces also its average revenue curve?

‘If in the long run firms earn zero profits, they should shut down and move to their
next best alternative’. Comment.

What kind of an incentive does (a) bailing out Greece during the debt crisis (i.e.
forgiving its debt) and (b) bailing out a failing bank during a banking crisis have in
common?

What are the three fundamental economic questions?

(a) ‘Unemployment in Greece is still too high’ (b) ‘Unemployment in Greece in

December 202 was 11.6%’. One of these two statements is considered an example
of positive economics and one of normative economics. Determine whether (a) or
(b) is an example of positive economics {hint: go to p. 7 or to the glossary file;
bonus: https://plato.stanford.edu/entries/economics/#PosiVersNormEcon}

Define the term welfare loss in the context of a positive consumption externality

List any policies we’ve discussed that may help in decreasing income inequality

C. H. Ziogas HL IB Econ Unagi series