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9 Cards in this Set
- Front
- Back
Given the demand curve, the consumer surplus is... |
Decreased by higher prices and increased by lower prices
Pg. 94-95 |
|
The diff between the actual price that a producer receives and the minimum acceptable price is called what? |
Producer surplus
Pg. 95 |
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When the combined consumer and producer surplus is at a maximum for a product then.. |
The market is allocatively efficient
Pg. 96-97 |
|
When the output is greater than the optimal level of output for a product there are efficiency... |
Losses from the overproduction of the product
Pg. 98-99 |
|
Public goods are... |
Nonrivalry and nonexcludability
Pg. 99-100 |
|
When people benefit from a good without paying for its costs there is a what? |
Free-rider problem
Pg. 100 |
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When the production and consumption of a product entail negative externalities, a competitive product market results in an... |
Overallocation of resources to the product
Pg. 120 |
|
A positive externality in the production of some product is called what? |
Underproduction
Pg. 121 |
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How does government try to capture more of the benefits for society whe there is a positive externality? |
By subsidizing producers
Pg 122-123 |