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FIFTH RULE OF IMPERFECTION: The fifth of seven basic rules of the economy. It is the observation that the real world is not perfect. This means markets often fail to achieve efficiency because of several failings. This also means that government seldom enacts the policies needed to correct market failings. We are usually faced with the lesser of evils.
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Lesson 11: Elasticity Basics | Unit 4: A Continuum
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Page: 22 of 25
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In this unit, you should have learned about:- The elasticity continuum that ranges from 0 to infinity.
- The five elasticity alternatives -- perfectly elastic, relatively elastic, unit elastic, relatively inelastic, perfectly inelastic.
- Perfectly elastic as the alternative in which price is fixed.
- Relatively elastic as the alternative in which small changes in price cause large changes in quantity.
- Perfectly inelastic as the alternative in which quantity is fixed.
- Relatively inelastic as the alternative in which large changes in price cause small changes in quantity.
- Unit elastic as the alternative in which changes in price are matched by changes in quantity.
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INEFFICIENT The state of resource allocation that exists when the highest level of consumer satisfaction is not achieved from available resources. This state occurs in market exchanges if the price buyers are willing and able to pay for a good does not reflect the satisfaction everyone obtains from the consuming the good or if the price sellers need to charge for a good does not reflect all opportunity cost of producing the good.
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ORANGE REBELOON
[What's This?]
Today, you are likely to spend a great deal of time watching infomercials trying to buy either throw pillows for your bed or a package of blank rewritable CDs. Be on the lookout for mail order catalogs with hidden messages.
Your Complete Scope
This isn't me! What am I?
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A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!
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"Experience keeps a dear school, but fools will learn in no other. " -- Benjamin Franklin
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ANOVA
Analysis of Variance
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