A system for coordinating society's productive activities.
What is an economy.
100
The world's population increased, therefor increased the need for clothing-increased the need for cotton.
What is demand curve
100
Society cares about ______ in addition to efficiency.
What is equity.
100
Legal Restrictions on how high or low a market price may go.
What is price control
100
Market price of labor.
What is minimum wage.
200
The value of the best alternative forgone in making any choice.
What is opportunity cost.
200
Coffee and tea. muffins and donuts , train rides and air flights are known as.
What is substitutes.
200
Lack of property rights and inaccuracy of prices.
What is market failure.
200
Rents limited to no more than $800 x month.
What is price ceiling.
200
Right to supply a good.
What is a license.
300
Anything used to produce something else: Land, labor, capital, and human capital.
What is a resource.
300
Cappuccino and cookies, cars and gasoline are known as.
What is compliments.
300
Single seller can determine the market price.
What is monopolist.
300
People expend money, effort and time to cope with shortages.
What is wasted resources.
300
Price is above the equilibrium price.
What is excess supply.
400
"One man draws out the wire, another straights it, a third cuts it a fourth points it a fifth grinds it at the top for receiving the head; to make the head requires two or three distinct operations..." Wealth of Nation, Adam Smith
What is specialization.
400
Aleisha, Brad and Claudia: $29 + $15 + $5 = $49
Sum achieved by all buyers.
What is total consumer surplus.
400
Pollution: existing property rights don't guarantee a right to ownership of clean air. The actions of individuals sometimes have a side effect on the welfare of others that the market doesn't take into account:
What is externalities.
400
A tenant gives the landlord a few hundred extra to have the apartment they want, even when a price ceiling is in place.
What is black market.
400
Smaller seats, lower quality food, bad service.
What is inefficiently high quality.
500
Brazil should specialize in producing small jets because the opportunity cost of a small jet is smaller than the United States.
What is comparative advantage.
500
The demand curve for a good determined by each potential consumer's willingness...
What is to pay.
500
Any piece of information that helps people make better economic decisions.
What is a market signal.
500
Dead weight loss, inefficient allocation to consumers, wasted resources, inefficiently low quality.
What is problems with price ceiling.
500
In 2011 minimum wage in Australia compared to the United States is a difference of: