Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
19 Cards in this Set
- Front
- Back
|
Wedge |
The difference between the demand price of the quantity transacted in the supply price of the quantity transacted for a good when the supply of the good is legally restricted often created by a quantity control or quota |
|
|
Quota rent |
The difference between the demand price and the supply price at the quota limit this difference the earnings that accrue to the license holder is equal to the market price of the license when the license is traded |
|
|
Price controls |
Legal restrictions on how high or low Market mango |
|
|
Price ceiling |
The maximum price sellers are allowed to charge for a good or service a form of price control |
|
|
Price floor |
A minimum price buyers are required to pay for a good or service a former price control |
|
|
Deadweight loss |
The loss in total Surplus that occurs whenever an action or policy reduces the quantity transacted below the efficient market equilibrium quantity |
|
|
Inefficient allocation to Consumers |
A form of inefficiency in which some people who want the good badly and are willing to pay a higher price don't get it and some who care relatively little about the good and they're only willing to pay a low price to get it often a result of price ceiling |
|
|
Wasted resources |
A form of inefficiency in which people expend money time and effort to cope with the shortages caused by a price ceiling |
|
|
Inefficiently low quality |
A form of inefficiency in which Sailors offer low quality Goods at a lower price even though buyers would prefer a higher quality at a higher price often a result of price ceiling |
|
|
Black Market |
A market in which goods or services are bought and sold illegally either because it is illegal to sell them at all or because the prices charged or legally prohibited by a price ceiling |
|
|
Minimum wage |
A legal floor on the wage rate. The wage rate is the market price of Labor |
|
|
Inefficient allocation of sales among sellers |
A form of inefficiency in which sellers who would be willing to sell a good at the lowest price or not always those who actually managed to sell it often the result of a price floor |
|
|
Inefficiently high quality |
A form of inefficiency in which sellers offer high-quality Goods at a high price even though buyers would prefer a lower quality at a lower price often the result of a price floor |
|
|
Quantity control |
An upper limit, set by the government, on the quantity of some good that can be bought or sold also referred to as a quota |
|
|
Quota |
An upper limit, set by the government, on the quantity of some good that can be bought or sold also referred to as quantity control |
|
|
Quota limit |
The total amount of a good under a quota or quantity control that can be legally transacted |
|
|
License |
The right, conferred by the government or an owner, to supply a good |
|
|
Demand price |
The price of a given quantity at which consumers will demand that quantity |
|
|
Supply price |
The price of a given quantity at which producers will supply that quantity |
