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7 Cards in this Set
- Front
- Back
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Economic Force |
necessary reactions to scarcity the forces of scarcity naturally existing |
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Invisible Hand |
the Price mechanism |
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Invisible Hand Theorem |
the insight that a market economy, through the price mechanism, will allocate resources efficiently |
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Market Force |
an economic force that is given relatively free reign by society to work through the market ration by changing prices market forces not always allowed to work |
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Insitutions |
The formal and informal rules that constrain human economic behavior |
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Market Failure |
Situations in which the market does not lead to a desired result In economics, market failure is a situation in which the allocation of goods and services is not efficient. That is, there exists another conceivable outcome where an individual may be made better-off without making someone else worse-off. (The outcome is not Pareto optimal.) |
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Private Property Right |
The control a private individual or firm has over an asset |
