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Macro-Economics
Vocabulary Chap 6
| Question | Answer |
|---|---|
| Price | monetary value of a product as established by supply and demand |
| Rationing | system under which an agency such as government decides everyone's "fair" share |
| Rationing Coupon | ticket or a receipt that entitles the holder to obtain a certain amount of a product |
| Rebate | partial refund of the original price of the product |
| Economic Model | set of assumptions to help analyze behavior and predict outcomes |
| Market Equilibrium | situation in which prices are relatively stable *quantity supplied and demanded are equal |
| Surplus | situation in which quantity supplied is greater than quantity demanded |
| Shortage | situation in which quantity supplied is less than quantity demanded |
| Equilibrium Price | price that "clears the market" and leaves no surplus or shortage *quantity supplied and demanded are equal |
| Price Ceiling | maximum legal price for a product |
| Minimum Wage | lowest legal wage to pay most workers |
| Price Floor | lowest legal price that can be paid for a good or service |
| Target Price | price floor for farm products |
| Nonrecourse Loan | loan that carries neither a penalty nor further obligation to repay if not paid back |
| Deficiency Payment | check sent to producers that makes up the difference between the actual market price and the target price |
Created by:
kvanolson
on 2012-02-13