Economy where industry is publicly owned and a central authority makes production and consumption decisions
What is command economy?
100
An economic situation when no individual would be better off doing something different.
What is equilibrium?
100
The change in the price of a good is the change in the quantity of that good demanded that results from a change in the overall purchasing power of the consumer’s income when the price of the good changes.
What is income effect?
100
The improvement in labor created by education and knowledge that is embodied in the workforce.
What is human capital?
100
Rules that protect the environment by specifying limits for or actions by producers and consumers.
What is environmental standards?
200
a system for coordinating a society’s productive and consumptive activities.
What is economy?
200
A good or service when the quantity supplied exceeds the quantity demanded
What is surplus?
200
The ratio of the percent change in the quantity demanded to the percent change in the price as we move along the demand curve.
What is price elasticity of demand?
200
It results from the demand for the output being produced.
What is derived demand?
200
A tax that depends on the amount of pollution a firm produces.
What is emissions tax?
300
Rewards or punishments that motivate particular choices.
What are incentives?
300
A price ceiling will cause a
shortage
300
The maximum price at which he or she would buy that good.
What is willingness to pay?
300
The division of total income among land, labor, capital, and entrepreneurship.
What is factor distribution of income?
300
Taxes designed to correct for the effects of external costs
What are Pigouvian taxes?
400
Economic measures that summarize data across many different markets.
What are economic aggregates?
400
Price ceilings often lead to inefficiency in the form of____;people who want the good badly and are willing to pay a high price don’t get it,
inefficient allocation to consumers
400
The sum of the individual consumer surpluses of all the buyers of a good in a market.
What is total consumer surplus?
400
The additional revenue generated by employing one more unit of that factor.
What is marginal revenue product?
400
The marginal private benefit plus the marginal external benefit.
What is marginal social benefit of a good?
500
Is the branch of economic analysis that describes the way the economy actually works.
What is positive economics?
500
A market in which goods or services are bought and sold illegally
What is Black market?
500
The distribution of the tax burden.
What is tax incidence?
500
Wage differences across jobs that reflect the fact that some jobs are less pleasant or more dangerous than others.
What are compensating differentials?
500
An external benefit that results when new technological knowledge spreads among firms.