In which year did Doctor Villermé report on children's working conditions?
In 1840.
What did the law of 22 March 1841 prohibit regarding child labor?
Children under 8 working in companies with more than 20 employees.
When was the right to strike and freedom of association established?
In 1884.
In which year were paid holidays introduced?
In 1936.
When was the SMIG introduced?
In 1950.
In which year was the SMIC established?
In 1970.
What does Article 17 of the 1789 Declaration of the Rights of Man declare about property?
Property is an inviolable and sacred right.
What is a patent in terms of property rights?
A patent is a property title over an invention that legally protects the inventor.
What is the right of usus in property rights?
Usus is the right to use an asset.
What does fructus mean in the context of property rights?
Fructus is the right to derive income from an asset.
What is the abusus prerogative in property rights?
Abusus is the right to sell or transform an asset.
Which institution enforces fair competition rules at the European level?
The European Commission enforces fair competition rules at the European level.
What role does the European Central Bank play in market institutions?
It defines monetary policy in the euro area.
Which organization regulates markets internationally?
The World Trade Organization regulates markets internationally.
What does microeconomics study?
The individual behavior of consumers and producers.
Which reasoning method does microeconomics use?
Marginal reasoning.
What comparisons does microeconomics use?
Rational comparisons of costs and benefits of choices.
What does homo economicus seek to maximize?
Personal interest.
What does homo economicus seek to minimize?
Costs.
What does marginal reasoning examine?
How behavior changes with marginal cost, productivity, or marginal utility.
Who studied pure and perfect competition in 1921?
Frank Knight.
What are the five conditions of pure and perfect competition?
Atomicity, freedom of entry and exit, product homogeneity, information transparency, and mobility of factors of production.
What does atomicity require in a market?
A very large number of producers and buyers so no one can influence price.
What types of barriers to entry or exit exist in markets?
Financial, regulatory, or technological barriers.
What can cause barriers to entry or exit besides external factors?
The behavior of other firms.
Why is supply an increasing function of price?
Producers offer more when price rises to maximize profit.
Why is demand a decreasing function of price?
Consumers demand more when price falls under their budget constraint.
What determines market equilibrium?
The confrontation of market supply and market demand.
What is market supply?
The sum of all individual supplies.
What is market demand?
The sum of all individual demands.
What is an excess in a market?
A situation where price is above equilibrium and supply exceeds demand.
What is a shortage in a market?
A situation where price is below equilibrium and demand exceeds supply.
What are the three main determinants of demand?
Consumer preferences, the price of the good, and the buyer’s income.
What is marginal utility in economics?
The satisfaction provided by the last unit consumed.
How is the price elasticity of demand calculated?
As the rate of variation of demand divided by the rate of variation of price.
What formula calculates the rate of variation?
(Final value - Initial value) divided by Initial value, times 100.
What is the price elasticity of demand when price rises 100% and demand falls 50%?
−0.5
When is elasticity considered strong, weak, unitary, or rigid?
Strong if |e| > 1, weak if 0 < |e| < 1, unitary if |e| = 1, rigid if e = 0.
Who observed that some necessities increase in demand when price rises, and when?
Robert Giffen during the Irish famine.
Who studied luxury goods whose price signals quality and rarity?
Thorstein Veblen, 1857-1929.
Test your knowledge with 13 questions on Markets and Competitive Equilibrium.
1. Regarding the labor protections introduced in 1841, which statements are correct?
2. Which chronology correctly describes major French labor-market regulations?
Review the complete course in the study sheet for Markets and Competitive Equilibrium.
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