SUPPLY+DEMAND
When the price of something goes up, people usually buy less of it. When the price goes down, people buy more.
WHAT IS THE LAW OF DEMAND?
WHAT IS COMPARATIVE ADVANTAGE?
______ CAN MAKE EVERYONE BETTER OFF.
WHAT IS "TRADE"?
Governments Can Sometimes Improve________ _________.
WHAT IS "MARKET OUTCOMES"?
THIS CASE REPRESENTS HOW RESELLERS CAN ALLOCATE SCARCE RESOURCES IN A COMPETITIVE MARKET.
WHAT IS "HAMILTON"?
When the price goes up, sellers are more willing to produce and sell because they can make more money. When the price goes down, sellers produce less because it’s not worth their effort.
WHAT IS THE LAW OF SUPPLY?
For both parties to gain from trade, the price at which they trade must lie between their_______ _______.
WHAT ARE "OPPORTUNITY COSTS"?
THIS IS WHAT HAPPENS When the Government Prints too much Money...
WHAT IS "PRICES RISE"?
A binding price floor causes a________.
WHAT IS "SURPLUS"?
The amount a seller is paid for a good minus the seller’s cost of providing it.
WHAT IS CONSUMER SURPLUS?
T-shirts—factories can ramp up production easily if prices increase.
WHAT IS AN EXAMPLE OF ELASTIC SUPPLY?
A reduction in ________ to free trade improves the welfare of the importing country as a whole.
WHAT ARE "BARRIERS"?
Society Faces a Short-run Trade-off Between ________ and Unemployment
WHAT IS "INFLATION"?
When the government imposes a ______ ____ _____ on a competitive market, a shortage arises, and sellers must ration scarce goods among potential buyers and another producer.
WHAT IS A "BINDING PRICE CEILING"?
The inability of some unregulated markets to allocate resources efficiently. When markets fail, public policy can potentially remedy the problem and enhance economic efficiency.
WHAT IS "MARKET FAILURE"?
Taxes on cigarettes work because they’re ________ people keep buying even if prices rise.
WHAT IS "INELASTIC"?
Even if the United States has an ______ _______ in the production of both cars and food, it should specialize in the production of the item for which it has a comparative advantage.
WHAT IS ABSOLUTE ADVANTAGE?
RATIONAL PEOPLE THINK AT THE ________.
WHAT IS "MARGIN"?
A tax on a market _______ the market’s size
WHAT IS "SHRINKS" OR "DECREASES"?
GLOBAL PARTIES NEGOTIATING ON TARIFF REGULATION IS AN EXAMPLE OF ____ ______ AND CAN IMPACT MARKET FAILURE.
WHAT IS "MARKET POWER"?