11

Your formula $\mu = \sum\limits_{i=0}^n x_i$ just denotes the total amount of goods, so this just means that $\mu$ units were distributed among $n$ agents. Scarcity (in this context) means that no matter how you distribute these $\mu$ units, as long as everything else is unchanged (ceteris paribus) at least one agent would like to get more, i.e. $\forall (...


6

Rent-seeking Has no single agreed-upon definition (see the many definitions below). Is a fancy synonym for "bad for society" (see especially Tullock, 1989 below). Sometimes (but not always) refers specifically to lobbying (your example seems to be following this usage). (In light of the above, my opinion/recommendation is that everyone should ...


6

Unfortunately, definitions of many terms in economics are not universally agreed upon. The term externality is one such example. Indeed, it is notoriously difficult to write down any precise definition of externality that everyone will agree on (see quotes below). The simple, standard, and broad definition I favor is this: A decision's effects are ...


6

I usually use the phrase "Pareto worsening". It is not really widespread, in fact I am not sure I have ever heard anyone else use it. However now I googled it and people seem to use it in connection with Hart's 1975 paper wherein he shows that the opening of some new markets can make every agent worse off. Hart himself did not call this Pareto worsening, but ...


5

You are most likely looking for labor or wage share defined as the ratio of labor costs to nominal GDP. It basically expresses how much share of nominal GDP gets captured by labor. You can find the data for the labor share in the US here, under that bit of text (for some reason I could not find direct link to pure dataset). The data are from the US bureau ...


4

The strict logic opposite of course is simply any change where at least one person is worse off but not sure we need a name for that. The conceptual opposite to Pareto improvement can as you say be a change where no one is better off and at least one person is worse of. Existing Antonyms to "improvement" As for what to call it, the Thersaurus does indeed ...


4

I suspect you have found the author responsible for the original coinage of the word "externality" within economics, with this meaning. In the 1950s (and earlier), the discussion of externalities was typically done using the phrase "external economies", as Francis M. Bator frequently did too. Bator built on Scitovsky (1954) and Meade (1952), both of whom ...


4

Yes, a commodity space is the set of all possible commodity bundles. The simplest Micro 101 example is typically the nonnegative quadrant of $\mathbb{R}^2$, but in general equilibrium theory it is often assumed to be infinite-dimensional since there are infinitely many commodities (each good is differentiated by time and space, etc.).


4

Well this is 'exponential discounting'. An infinite sum of geometric series: $$\sum R+ R\delta + R\delta^2.... R\delta^t = \frac{R}{1-\delta}, \text{ if } |\delta|<1$$ Now lets call the denominator rho $1-\delta= \rho$. The exponential discounting is there since its an infinite sum of geometric series. Edit: In response to Giskard's +1 comment I tried to ...


3

An answer (I am not sure this is the right one) is if the "positive rate $\rho$" refers to an interest rate. Sometimes interest rates are referred to as discount rates. In this case we would have a discount factor of $1/(1+ \rho)$, and the usual present value formula for a perpetual annuity yields $$\frac{R}{1+ \rho} + \frac{R}{(1+ \rho)^2} + \frac{...


3

This is because it does not make sense to compare chosen options to all other alternatives that are mutually exclusive. For example, if you have 5 choices A, B, C, D, E, you can choose one, and C is the most preferred option it does not make any sense to compare picking C to jointly picking A, B, D and E. Only one of the other options can be pick so you ...


3

Yes, marketing falls under the JEL code of M, specifically M31.


3

Under Mao the Chinese government was a planned economy, prices were set by the party, not by the free market. Procurement prices of agricultural produce, what the government payed to farmers, were lower than consumer prices of the same produce, what the government got from selling the produce to the consumers. The difference in prices becomes state revenue. ...


3

Use or consumption of natural resources is not in mainstream economics considered as an externality per se. First of all the quote from Mankiw is probably from undergraduate textbook and taken out of context as it is incomplete. For example according to Economics by Mankiw and Taylor (2014) 3rd ed the externality is defined as: the cost or benefit of ...


3

I would like to get some help figuring out the basic concepts and definitions in order to address these type of questions. Namely, how to distribute income among population in the best way for the collective. There is actually no single best way of distributing income for the 'collective'. This is because what is best depends on normative judgement. What is ...


2

Difference between money and currency in general (i.e. in any monetary arrangement -fiat money, gold standard etc.) is as follows: Currency: is the money in the strictest sense of a word. It includes coins and bank notes in the circulation. In foreign exchange the word is also used to as a synonym for unit of money (e.g. $ €) but from your question I think ...


2

To expand on my comment. Your question is not really about economics but about philosophy or political science. The reason for this is that the Economics is usually defined following the definition of Lionel Robbins as: "Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." Neo-...


2

There are lots of different people unemployed, and the answer will be different depending on the person. In your prostitute example, if you left your medical assistant job because prostitution paid more, then it's frictional, because there are lots of medical assistant jobs, but it might take you time to go through the interview process and be onboarded. If ...


2

There are two key properties for a scarce good. First that demand can get arbitrarily high if the price is low enough. So if you plot demand on the $x$-axis and price on the $y$-axis this function is decreasing for all $x$. Second is that production cost is non zero, producing more items will always cost more money. This is always the case for physical goods ...


2

“Private sector” financing or “non-government” financing will certainly be most clear. “Market” financing is succinct but it can be confused with “capital market” financing, that is, borrowing by issuing tradable debt instruments. “Alternative” financing is generally used to refer to non-bank, non-capital-market financing, such as borrowing from private ...


2

Growth of GDP is generally reported quarterly on YoY basis in real terms, i.e., the growth rate of 5% means increase of GDP in current quarter by 5% as compared to GDP in same quarter previous year in real terms. As with most macroeconomic variables, GDP has seasonality and that is why the QoQ is not reported. For example for india the FY Q1 (Calender Q2) ...


1

GDP is by definition the the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It is meant to be a broad measure of domestic production (i.e. how much final goods and services are produced in a given amount of time at market value). When GDP increases that means that the ...


1

My best definition: lobbying to gain special privileges from the government. Rent refers to the concept of economic rent. Economic rent can be thought of as profit. The amount earned beyond costs. So rent seeking is looking to make more profit and specifically make more profit without producing anymore wealth. The best way of doing this is to rig the rules ...


1

I’ll add just one caveat to the answers and comments already posted: Vast majority of economists do no treat commodities as vectors as we define in physics. It is simply because there is no way to interpret the “direction” of a commodity bundle! So you should rather imagine elements of the commodity space to be simply columns of numbers denoting the quantity ...


1

It seems that the gentlemen is speaking in the english dialect of England. The Years purchase phrase is still used today. https://en.wiktionary.org/wiki/year%27s_purchase Years Purchase: The amount yielded by the annual income of property; used in expressing the value of a thing in the number of years required for its income to yield its purchase price, ...


1

A main textbook in environmental economics is Perman et al.'s Natural resource and environmental economics (currently in it's 4th edition, published in 2011). Their definition of an externality is: "An external effect, or externality, is said to occur when the production or consumption decisions of one agent have an impact on the utility or profit of ...


1

The issue is how we can decompose changes in unemployment into frictional, structural, cyclical, and seasonal. The question has been updated to include the source for the definition of “structural” unemployment. However, I do not have access to that text. There is nothing in the definition that allows us to calculate “structural unemployment” (nor the other ...


1

Hi: They are pretty close to completely different. I don't know the least thing about game theory but a nash equilibrium describes what happens in a game when two or more people have a certain type of expectation. RE is one type of expectation but if you google for RE you'll see that it's a field in itself. It happens to have an application in game theory ...


1

Deloitte managed a semi-intelligible explanation. It's called "super" when an income tax deduction is applied twice for the same item (e.g. for R&D)... In early 2015, Slovakia introduced a new type of tax incentive aimed at supporting companies conducting corporate R&D (most common is development of new or substantially improved products, services,...


1

If you are looking for term for the reason why the efficiencies occur it would be the increasing returns to scale.


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