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  1. � Neoclassical Economics �
    the school of economics that takes the traditional model as its starting point, emphasizing competitive markets and equilibrium
  2. � Pareto efficiency �
    the situation where there is no opportunity to make changes in such a way as to make at least one person better off without making anyone else worse off
  3. � First Fundamental Theorem of Welfare economics (Neoclassical Theory) �
    A perfectly competitive free market economy will be Pareto efficient
  4. � General Equilibrium (neoclassical theory) �
    a situation in which the relevant information flows unimpeded and instantaneously throughout an entire economy, so that all prices and quantities are simultaneously determined
  5. � New institutionalist economics �
    the school of economics that shares many assumptions with neoclassical economics but looks at how economic institutions may develop to address problems such as those arising from transaction costs and imperfect information
  6. � Second-best theorem �
    the theorem that sates that if first-best Pareto efficiency (based on nonintervention) cannot be achieved, then achieving the second-best outcome may require intervention in many markets
  7. � Institutionalist economics �
    the school of economics that emphasizes the complex and evolving nature of organizations and the strong influence of habit on individual behavior
  8. � Social (or Socio-) economics �
    the school of economics that emphasizes the requirements for humane community life, focusing on ethical dimensions
  9. � Marxist (or radical) economics �
    the school of economics that emphasizes the power that comes with the ownership and control of capital
  10. � Post-Keynesian economics �
    the school of economics that emphasizes the dynamic nature of the macro-economy and the importance of uncertainty in explaining economic behavior
  11. � Austrian economics �
    the school of economics that emphasizes the development of markets over time, information, and entrepreneurship, along with marginal thinking, markets, and prices
  12. � Ecological economics �
    economics that emphasizes the dependence of economies on the natural world and the long-term environmental effects of economic activity
  13. � Feminist economics �
    emphasizes nonsexist approaches to policies, topics, and methods
  14. �Individualistic ethics �
    the normative judgment that only the preferences and choices of individuals carry ethical weight and that society is merely an aggregate of individual
Card Set
market systems and normative claims
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