Reading...
Play button
Play button
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;
16 Cards in this Set
- Front
- Back
|
Supply Schedule
|
A graph of a supply schedule, with price on the vertical axis and quantity demanded on the horizontal axis.
|
|
|
Supply Curve
|
A graph of a supply schedule, with price on the vertical axis and quantity demanded on the horizontal axis.
|
|
|
Productivity
|
The quatity of output produced per unit input.
|
|
|
Equilibrium
|
The quantity and price at which quantity supplied and demanded are equal. Also known as the market clearing price
|
|
|
Disequilibrium
|
A point at which quantity supplied and quanitity demanded are not equal.
|
|
|
Surplus
|
Quantity supplied is larger than quantity demanded.
|
|
|
Shortage
|
When quantity supplied is smaller than quantity demanded.
|
|
|
Price Floor
|
A situation in which price is not allowed to decrease below a certain level.
|
|
|
Price Ceiling
|
A situation in which price is not allowed to rise above a certain level.
|
|
|
Consumer Surplus
|
What the buyer is willing to pay minus what she actually pays.
|
|
|
Producer Surplus
|
The amount a seller is paid for a good minus a seller's cost.
|
|
|
Efficiency
|
Resource allocation which maximizes total surplus to all parties involved.
|
|
|
Allocative Efficiency
|
When the socially optimal quantity of a good is produced. This is the point at which social benefit = social cost and surplus (consumer and producer) is maximized.
|
|
|
Equity
|
The fairness of the distribution amoung the members of society.
|
|
|
Buffer Stock
|
A stockpile of goods (generally primary products) maintained to prevent radical price fluctuations--when prices are low the buffer stock is built up (to reduce supply) and when prices are high the buffer stuck Is run down (to increase supply)
|
|
|
Commodity Agreement
|
When a group of primary producers agree to reduce supply in order to keep the price of a good high.
|
