Economic Growth and Market Failures

These flashcards summarize key terms and concepts discussed in the lecture regarding economic growth, market failures, public goods, and inequality.

Nobel Prize in Economics

An award given to economists for outstanding contributions to the field, shared by Joel Mokyr, Philippe Aghion, and Peter Howitt for their work on technology and economic growth.

Creative Destruction

A theory describing the process where old products are continually replaced by new ones, fostering economic growth.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available for everyone and one person's use does not diminish another's.

Free Rider Problem

A situation where individuals benefit from resources, goods, or services without paying for them, leading to under-provision of public goods.

Excludability

The ability to prevent someone from using a good; relevant in distinguishing between different types of goods.

Rivalry in Consumption

A situation where one person's consumption of a good reduces the amount available for others.

Club Goods

Goods that are excludable but non-rivalrous, such as private parks or subscription services.

Intergenerational Mobility

The ability for individuals to move up or down the income distribution compared to their parents' income.

Human Capital

The economic value of an individual's skills and training; investment in human capital is essential for economic development.

Market Failures

Situations in which the allocation of goods and services is not efficient, often leading to negative outcomes such as inequality or lack of public goods.

Policy Objectives

Goals that aim to improve society through efficiency, competition, public goods provision, and addressing externalities.

Inequality

The unequal distribution of income and opportunity between different groups in society, impacting economic mobility and potential.