Econ 1020 Vocab Chapter 10 And 11

Front 1

the full equilibrium of the economy, when all markets clear simultaneously

Back 1

general equilibrium

Front 2

the difference between the price for which a producer would be willing to provide a good or service and the actual price at which the good or service is sold

Back 2

producer surplus

Front 3

the difference between what producers gain and (the monetary value of) what consumers lose when output is restricted under imperfect competition; also, the difference between what the government gains and what consumers lose when taxes are imposed.

Back 3

deadweight loss

Front 4

a resource allocation is said to be Pareto efficient if there is no rearrangement which can make anyone better off without making others worse off

Back 4

Pareto efficiency

Front 5

the condition in which whatever the economy produces is distributed among people in such a way that there are on gains to further trade

Back 5

exchange efficiency

Front 6

the condition in which firms connot produce ore of some goods without producing less of other gods; the economy is on its production possibilities curve

Back 6

production efficiency

Front 7

the condition in which the mix of goods produced by the economy reflects the preferences of consumers

Back 7

product-mix efficiency

Front 8

the amount of extra production of one good that one obtains from reducing the production of another good by one unit, moving along the production possibilities curve

Back 8

marginal rate of transformation

Front 9

an analysis that focuses on only one or a few markets at a time

Back 9

partial equilibrium analysis

Front 10

a simultaneous analysis of all capital, product, and labor markets throughout the economy; it shows, for instance, the impact on all prices and quantities of immigration or a change in taxes

Back 10

general equilibrium analysis

Front 11

a phenomenon that arises when an individual or firm takes an action but does not bear all the costs (negative externality) or receive all the benefits (positive externality)

Back 11

externality

Front 12

a good, such as national defense, that costs little or nothing for an extra individual to enjoy and the costs of preventing any individual from the enjoyment of which are high; public goods have the properties of nonrivalrous consumption and nonexcludability

Back 12

public goods

Front 13

the price at which supply equals demand, so there is neither excess supply nor excess demand

Back 13

market failures

Front 14

term used to describe the organization of the market, such as whether whether there is a high degree of competition, a monopoly, an oligopoly, or monopolistic competition

Back 14

market structure

Front 15

a situation in which each firm is a price taker- it cannot influence the market price; at the market price, the firm can sell as much as it wishes, but if it raises its rice, it loses all sales

Back 15

perfect competition

Front 16

a market consisting of only one firm

Back 16

monopoly

Front 17

the form of imperfect competition in which the market has several firms, sufficiently few that each one must take into account the reactions of rivals to what it does

Back 17

oligopoly

Front 18

the form of imperfect competition in which the market has sufficiently few firms that each one faces a downward-sloping demand curve, but enough that each can ignore the reactions of rivals to what it does.

Back 18

monopolistic competition

Front 19

any market structure in which there is some competition but firms face downward-sloping demand curves

Back 19

imperfect competition

Front 20

the extra revenue received by a firm for selling one additional unit of a good

Back 20

marginal revenue

Front 21

laws that discourage monopoly and restrictive practices and encourage greater competition

Back 21

antitrust laws

Front 22

a monopoly that exists because average costs of production are declining beyond the level of output demanded in the market, thus making entry unprofitable and making it efficient for there to be a single firm

Back 22

natural monopoly

Front 23

a situation in which market participants lack information important for their decision making

Back 23

imperfect information

Front 24

laws aimed at protecting consumers, for instance by assuring that consumers have more complete information about items that are considering buys

Back 24

consumer protection legislation

Front 25

someone who enjoys the benefit of a public good without paying for it; because it is difficult to preclude anyone from using a pure public good, those who benefit from the goods have an incentive to avoid paying for them and become a free-rider

Back 25

free-rider problem

Front 26

laws that discourage monopoly and restrictive practices and encourage greater competition

Back 26

antitrust laws

Front 27

a monopoly that exists because average costs of production are declining beyond the level of output demanded in the market, thus making entry unprofitable and making it efficient for there to be a single firm

Back 27

natural monopoly

Front 28

a situation in which market participants lack information important for their decision making

Back 28

imperfect information

Front 29

laws aimed at protecting consumers, for instance by assuring that consumers have more complete information about items that are considering buys

Back 29

consumer protection legislation

Front 30

someone who enjoys the benefit of a public good without paying for it; because it is difficult to preclude anyone from using a pure public good, those who benefit from the goods have an incentive to avoid paying for them and become a free-rider

Back 30

free-rider problem

Front 31

laws that discourage monopoly and restrictive practices and encourage greater competition

Back 31

antitrust laws

Front 32

a monopoly that exists because average costs of production are declining beyond the level of output demanded in the market, thus making entry unprofitable and making it efficient for there to be a single firm

Back 32

natural monopoly

Front 33

a situation in which market participants lack information important for their decision making

Back 33

imperfect information

Front 34

laws aimed at protecting consumers, for instance by assuring that consumers have more complete information about items that are considering buys

Back 34

consumer protection legislation

Front 35

someone who enjoys the benefit of a public good without paying for it; because it is difficult to preclude anyone from using a pure public good, those who benefit from the goods have an incentive to avoid paying for them and become a free-rider

Back 35

free-rider problem