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Vocabulary
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Cause and Effect
Popular Questions
Prices
100
Definition: the goods a company has on hand
What is Inventory?
100
True
Governments can set two types of price limitations, called price ceilings and price floor.
100
when goods are sold illegally, without regard form the government.
What was the cause of the Black Market?
100
buyers and sellers
Which two groups accept an equilibrium price?
100
to keep the goods from becoming too expensive
Why does a government place price ceilings, such as rent control, on some "essential" goods?
200
the costs consumers pay to look for a good
What is search costs?
200
False
A business might have a clearance sale to get rid of a demand
200
when the market lags in making sells
What causes imperfect competition?
200
disequilibrium
What is the condition of the market when supply and demand are not balanced?
200
by law, the most than can be charged for a good or service
What is price ceiling?
300
dividing up goods and services without regard to prices
What is rationing?
300
False
When quantity and demand are unequal it is called equilibrium?
300
efficient resource allocation
What is the cause of using resources for the most valuable purposes?
300
the price will go up since the item is rare
How does a shortage affect the price of an item?
300
price ceilings and price floors
How does the government control markets?
400
motivation to sell based on potential profit
What is profit incentive?
400
true
The lowest price a worker can be paid is minimum wage?
400
the price increases
What happens to the prices of goods when there is excess demand?
400
prevent inflation
What is the purpose of rent control?
400
to make more money
Why do suppliers increase production when there is high demand and high prices?
500
using resources for the most valuable purposes
What is efficient resource allocation?
500
False
Supply stock is a sudden demand in goods?
500
when something changes in demand
What causes price changes in a flexible market?
500
employers lose jobs
How can the minimum wage cause a surplus of labor?
500
to see if their prices are equal or not.
How to buyers and sellers use prices to communicate within the price system?