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Foundations
Supply and Demand
Elasticities
Government Intervention
Market Failure
100
the fundamental problem of economics
What is scarcity?
100

the economic generalization that states that all else being equal, there is a negative causal relationship between price and quantity demanded.

What is the Law of Demand?

100

when % change in QD is greater than the percentage change in the price which caused it.

What is Price Elasticity of Demand?

100
A maximum price for a good or service.
What is a price ceiling?
100
When market failure to produce the mix of goods and services to maximize society's well being?
What is a market failure?
200
a manmade factor of production that is used to produce goods and services.
What is capital?
200
factors such as changes in consumer tastes or the price of substitutes that will change market demand for a good or service
What are non-price determinants of demand?
200

The label for a PED measure that is greater than 1

What is PED Elastic?

200
a tax on per unit on a specific good - a type of indirect tax.
What is excise tax?
200
the unintended byproduct on the production of a good that effects third parties.
What is negative production externality?
300
What to produce, How to produce and For Whom to produce.
What are the Allocation Questions?
300

When quantity demanded is equal to quantity supplied at a single price.

What is market equilibrium?

300

Mobility of resources, unused capacity of firms, and the ability to store the good

What are the determinants for PES?

300

this is how goods are distributed when a price ceiling results in a disequilibrium (shortage)

What non price rationing?

300
the curve that illustrates the total benefits to society from the consumption of a good / service
What is Marginal Social Benefit Curve?
400
the phrase used to indicate that all variables (other than the one being examined are assumed not to change.
What is ceteris paribus?
400

a good for which market demand will decrease when consumer income increases.

What is an inferior good

400

good arising directly from natural resources or Land without having undergone a manufacturing process most often having a PED < 1

What is Primary commodity.

400

The name given to alternative markets that may arise when price ceilings cause disequilibrium.

What is an "underground" or "parallel" market?

400
when market produce fewer of a particular good than the optimal quanity
What is an underallocation of resources? or: underproduced
500

A simplified represtation of something in the real world, representing only those aspects being studied.

What is a model?

500

when two or more products are derived from a single product so it not possible to produce more of one without producing more of the other.

What is Joint Supply?

500

When PED = 1

What is unit elastic?

500
a type of indirect tax when the tax is calculated as a percentage of the price of a good rather than a fixed amount per good as done for an excise tax

What is an "ad valorem tax"?

500
goods that are nonrivalrous and nonexcludable
What are Public goods?