Economics - Chapter 6

Front 1

What happens when wages are set above the equilibrium level by law?

Back 1

Firms employ fewer workers
than they would at the equilibrium wage.

Front 2

On which kinds of goods do governments generally place price ceilings?

Back 2

those that are essential but too expensive for some consumers

Front 3

When buyers will purchase exactly as much as sellers are willing to sell, what is the condition that has been reached?

Back 3

equilibrium

Front 4

Which of the following is an example of a good whose price goes down because of improvements in technology?

Back 4

computer printers

Front 5

What happens when the supply of a nonperishable good is greater than the consumer wants to buy?

Back 5

the good becomes a luxury and the price rises

Front 6

Why did communist governments use a command economic system for many years?

Back 6

in an attempt to create a society in which everyone was equal

Front 7

Why did the U.S. government use rationing for some foods and consumer goods during World War II?

Back 7

to guarantee each civilian a minimum standard of living in wartime

Front 8

Which of the following is a situation that makes the market behave inefficiently?

Back 8

when consumers do not have enough information to make good choices

Front 9

What happens to a market in equilibrium when there is an increase in supply?

Back 9

quantity supplied will exceed quantity demanded, so the price will drop

Front 10

What is it called when the government uses some tool other than money to allocate goods?

Back 10

rationing

Front 11

What is the name of the smallest amount that can legally be paid to most workers for an hour of work?

Back 11

minimum wage

Front 12

The price ceiling that was used to control the price of housing in New York City and other cities was called?

Back 12

rent control

Front 13

the smallest amount, by law, that can be paid to a worker for an hour of labor

Back 13

minimum wage

Front 14

a maximum amount that can be legally charged for a good or service

Back 14

price ceiling

Front 15

a sudden lack of goods

Back 15

supply shock

Front 16

when quantity supplied is more than quantity demanded

Back 16

excess supply

Front 17

situation in which quantity demanded is greater than quantity supplied

Back 17

shortage

Front 18

a price ceiling placed on the amount people pay for housing

Back 18

rent control

Front 19

the financial and opportunity costs consumers pay when looking for a good or service

Back 19

search costs

Front 20

when quantity supplied and quantity demanded are not the same in a market

Back 20

disequilibrium

Front 21

costs of production that affect people who have no control over how much of a good is produced

Back 21

spillover costs

Front 22

when quantity demanded is more than quantity supplied

Back 22

excess demand

Front 23

situation in which quantity supplied is greater than quantity demanded

Back 23

surplus

Front 24

a minimum price for a good or service

Back 24

price floor

Front 25

a system of allocating scarce goods and services using some criteria other than price

Back 25

rationing

Front 26

the point at which quantity supplied and quantity demanded are the same

Back 26

equilibrium