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Chapter 5 Price
Chapter 5 Vocabulary
Question | Answer |
---|---|
a flaw in a price system where some cost haven’t been accounted for or distributed | Market failure |
effect that economic activity has on people/businesses that aren’t producers or consumers | Externality |
any good/service that is consumed by all members of a group, regardless of who paid | Public good |
the point where the quantity supplied/demanded are equal at the same price | Market equilibrium |
situation in which the quantity supplied at a given price exceeds the quantity demanded | Surplus |
situation in which the quantity demanded exceeds the quantity supplied | Shortage |
government regulation that sets a maximum price for a certain good | Price ceiling |
government regulation that sets a minimum price for a certain good | Price floor |
the lowest hourly wage rate that an employer can legally pay a worker | Minimum wage |
system by which a government distributes a good/service | Rationing |
buying/selling of goods in violation of the law | Black market |