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17 Cards in this Set

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  • Back
economic efficiency
a situation where no one in society can be made better off without making someone else worse off
technical efficiency
producing at a point on the PPC
market imperfection
a lack of efficiency that results from imperfect imformation in the marketplace
externalities
the costs of benefits of a transaction that are borne be someone not directly involved in the transaction
public goods
a good whose consumption by one person does not diminish the quantity or quality available for others
private property right
the limitation of ownership to an individual
free ride
the enjoyment of benefits of a good by a producer or consumer without having to pay for the good
monopoly
a situation where there is only one producer of a good
business cycle
fluctuations in the economy between growth and stagnation
rent seeking
thee use of resources simply to transfer wealth from one group to another without increasing production or total wealth
public choice
the study of how government actions result from the self-interested behaviors of voters
government role
the role of government may stem from the inefficiencies that exist in a market system
monetary policy
policy directed toward control of money and credit
federal reserve
the central bank of the united states
fiscal policy
policy directed toward government spending and taxation
centrally planned economy
an economic system in which the government determines what goods and services are produced and the prices at which they are sold
market economy
relies on prices and individual actions to solve economic problems