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8 Cards in this Set

  • Front
  • Back
price ceiling
a legal maximu price that may be charged for a particular good or service
price controls
government-mandadted minimum of maximum prices that may be charged for goods and services
price floor
a legal minimum price below which a good or service may not be sold. (minimum wage is an example)
price system
an economic system in which relative prices are constantly changing to reflect changes in supply and demand for different commodities.
rent control
the placement of price ceilings on rents in particular cities
terms of exchange
the conditions under which trading takes place. usually, the terms of exchange are equal to the price at which a good is traded.
transaction costs
all of the costs associated with exchanging
voluntary exchange
an act of trading in which both parties to the trade are subjectively better off after the exchange