Chapter 16 General Equilibrium and Economic Efficiency
Chapter 16 General Equilibrium and Economic Efficiency
Topics to be Discussed a General Equilibrium Analysis a Efficiency in EXchange a Equity and Efficiency a Efficiency in Production Chapter 16 Slide 2
Chapter 16 Slide 2 Topics to be Discussed ◼ General Equilibrium Analysis ◼ Efficiency in Exchange ◼ Equity and Efficiency ◼ Efficiency in Production
Topics to be Discussed a The gains from free trade On Overview--The Efficiency of Competitive Markets ■ Why Markets Fail Chapter 16 Slide 3
Chapter 16 Slide 3 Topics to be Discussed ◼ The Gains from Free Trade ◼ On Overview--The Efficiency of Competitive Markets ◼ Why Markets Fail
General Equilibrium Analysis a Partial equilibrium analysis presumes that activity in one market is ndependent Of other markets Chapter 16 Slide 4
Chapter 16 Slide 4 General Equilibrium Analysis ◼ Partial equilibrium analysis presumes that activity in one market is independent of other markets
General Equilibrium Analysis a General equilibrium analysis determines the prices and quantity in all markets simultaneously and takes the feedback effect into account Chapter 16 Slide 5
Chapter 16 Slide 5 General Equilibrium Analysis ◼ General equilibrium analysis determines the prices and quantity in all markets simultaneously and takes the feedback effect into account