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;
20 Cards in this Set
- Front
- Back
|
Consumer Surplus
|
the measure of the difference between what a person is willing to pay for a commodity and the amount he/she actually is required to pay
|
|
|
Marginal Cost (MC)
|
the change in total costs and the change in total variable costs per unit change in output
|
|
|
Utility
|
satisfaction from consumption of a good or service
|
|
|
Marginal Utility
|
diminishes with each consecutive consumption
|
|
|
Total Utility
|
rises as goods or services are consumed... up to a point
|
|
|
Price Floor
|
low stating that there is a lowest possible price for a good or service
|
|
|
Black Market
|
underground economy
shortage with a definate demand legal and illegal goods |
|
|
Price Ceiling
|
price established by some forms of gov't. Highest prossible price that can be charged for a good/service
|
|
|
Price Ceiling
|
price established by some forms of gov't. Highest prossible price that can be charged for a good/service
|
|
|
Elasticity of Demand
|
small change in price causes a large change in quantity demanded
|
|
|
Inelastice Demand
|
small change in price does not cause a large change in the quantity demanded
|
|
|
Efficiency
|
Situation where a company cannot produce more of one good without producing less of another, and when all available resources are used
|
|
|
Inefficiency
|
a situation where a company is not producing the ideal amount of of one product or another, or when not all resources are used
|
|
|
External Benefits
|
benefits that people do not pay for or are not included in the market price of a service of good
|
|
|
External Costs
|
costs people bear that are not paid or compensated for
|
|
|
Producer Surplus
|
the price of a good, minus the marginal cost of producing it, summer of the quantity sold
|
|
|
Subsidy
|
monetary assistance granted by a gov't to a person or group in support of an enterprise regarded as public interest
|
|
|
Quota
|
restriction on the maximum amount of a good that can be made
|
|
|
Invisible Hand
|
Adam Smith - directs the actions of individuals/companies to combine for the common good; does not intend to promote the public interest, only gain personally
|
|
|
Deadweight Loss
|
the decrease in consumer surplus and producer that results from an inefficient level of production
|
