VOCABULARY
Definition of public goods?
Goods that would not be provided at all in a free market
EX: National Defense and Flood Barriers
A market failure can best be defined as situation where
What is markets fail to distribute resources efficiently?
Economics deals primarily with the concept of?
What is Scarcity?
Definition of Monopoly Power?
A market in which only one firm produces all the output
Why is American Economy called a mixed economy?
It exhibits elements of both capitalism and socialism
Which of the following would not be true in a world without scarcity?
There would have to be an infinite supply of every resource
Definition of Common Access Resources ?
Natural resources over which there is no established private ownership
When examining the topic of market failure the supply curve can be referred as the:
What is Marginal Social Cost?
Approx. what percentage of the world's economies experience scarcity?
1oo percent
Definition of Subsidies ?
Payments made from government to individuals or firms for the production or consumption of particular goods or services
Air
Water in the ocean
Water in the city
Wood in the forest
Water in the city
Which product would be considered scarce:
Nike
Monet paintings
1-carat diamonds
All of the above
Definition of Merit Goods ?
Goods considered to be good by the government, which are underprovided by market and underconsumed
EX: HealthCare
When market failure occurs governments may intervene in order to?
Move towards the optional allocation of resources
Which of the following is not a major area of study of economist?
How people make decisions
how countries choose national leaders
How countries choose national leader
A good is considered scarce in a society when:
Everyone in that society can not have all they want of the good