Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Economics Chapter 5
| Question | Answer |
|---|---|
| When there is no effective way of keeping individuals from the benefit of a good once it comes into existence, the characteristic of the good becomes distinguished by __________________. | Nonexcludability |
| If a third party of a market transaction is experiencing an uncompensated cost, then the transaction results in a market failure are known as a ____________ or ______________. | Spillover cost; Negative externality |
| Market failures in competitive markets can be classified into __________-side and __________-side. | Demand; Supply |
| Characteristics of a private good include: | Excludability AND Rivalry |
| What is the difference between actual price a seller receives and the minimum acceptable price? | Producer surplus |
| An ______________ is a cost or benefit accruing to an individual or group,a third-party, that is external to a market transaction. | Externality |
| The ________________ curve for positive externalities reflects only the direct private benefit to the individuals who consume it. | Market demand |
| The market demand curve for positive externalities reflects: | Only the direct, private benefits to those who demand and use the product. |
| What is the difference between the maximum price a consumer is willing to pay for a product and the actual price? | Consumer surplus |
| Market failures can be used to justify: | Government intervention in the economy |
| Beyond the point at which diminishing returns sets in, as more of a good is produced, marginal costs tend to __________. | Increase |
| What is achieved at equilibrium quantity? | Productive efficiency AND allocative efficiency |
| True or false: Efficiency, or deadweight, losses are reductions of combined consumer and producer surplus associated with underproduction or overproduction of a product. | True |
| in most conditions, a(n) ___________ market ensures that the right amount of a particular product gets produced. | Free |
| Suppose that society were to decide that they wanted cleaner air and water because of new information about the adverse health effects of pollution. Then, one could expect: | The optimal quantity level of pollution control to increase AND the marginal benefit curve to shift rightward. |
| A good that could be produced by the market system (since exclusion is possible), but government provides it to avoid an under-allocation of resources is called a: | Quasi-public good |
| The supply curve for any good, private or public, is its marginal ____ curve. | Cost |
| The _____ ______ _____ measures society's marginal benefit of each unit of a particular good. |
Created by:
matthewbrown50
Popular Economics sets