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CAPTURE THEORY OF REGULATION: Control of a regulatory agency by those entities, usually the businesses of a particular industry, that the agency is designed to regulate. Those industries subject to economic regulation that is intended to protect the public interest (consumers) invariably find it beneficial to exert influence over the regulatory agency. One common way of doing this is to have former or future employees in the industry "temporarily" work for the regulatory agency.

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Lesson 10: Utility and Demand | Unit 3: Complex Choices Page: 8 of 21

Topic: Two Goods <=PAGE BACK | PAGE NEXT=>

  • In the real world, my decision would not about going to the beach.
  • I would choose between going to the beach and pursuing other activities.

    The analysis involving the choice of two goods:

    • Time at the beach
    • Time at the amusement park

  • Clearly both activities are enjoyable.
  • I would like to do both.

  • I suspect, however, that I will be facing assorted constraints that will force me to choose, to make a decision.

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FACTOR SUPPLY DETERMINANTS

Ceteris paribus influences, other than factor price, that shift the factor supply fall into three general categories: (1) market supply determinants, (2) market demand determinants, and (3) mobility. Comparable to any determinant, those falling into these three categories cause the factor supply curve to shift to a new location. An increase in factor supply is a rightward shift of the factor supply curve and a decrease in factor supply is a leftward shift.

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Today, you are likely to spend a great deal of time surfing the Internet trying to buy either a flower arrangement in a coffee cup for your father or a how-to book on meeting people. Be on the lookout for gnomes hiding in cypress trees.
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A communal society, a prime component of Karl Marx's communist philosophy, was advocated by the Greek philosophy Plato.
"To sit back and let fate play its hand out, and never influence it, is not the way man was meant to operate."

-- John Glenn, astronaut, U.S. senator

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