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micro test 2
micro vocab ch 5,6,7,11
| Question | Answer |
|---|---|
| Elasticity | A measure of the responsiveness of the quantity demanded or quantity supplied to one of its determinants. |
| Price elasticity of demand | A measure of how much the quantity demanded of a good responds to a change in the price of that good. |
| Total revenue | The amount paid by buyers and received by sellers of a good computed as P × Q. |
| Total revenue | The amount a firm receives for the sale of its output |
| Income elasticity of demand | A measure of how much the quantity demanded of a good responds to a change in consumers' income. |
| Cross-price elasticity of demand | A measure of how much the quantity demanded of one good responds to a change in the price of another good. |
| Price elasticity of supply | A measure of how much the quantity supplied of a good responds to a change in the price of that good. |
| Price floor | A legal minimum on the price at which a good can be sold |
| Price ceiling | A legal maximum on the price at which a good can be sold |
| Tax incidence | The manner in which the burden of a tax is shared among participants in a market |
| Welfare economics | The study of how the allocation of resources affects economic well-being |
| Willingness to pay | The maximum amount that a buyer will pay for a good |
| Consumer surplus | The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it |
| Cost | The value of everything a seller must give up to produce a good |
| Efficiency | The property of society getting the most from its scarce resources |
| Efficiency | Getting maximum output from the resources available |
| Efficiency | The property of a resource allocation of maximizing the total surplus received by all members of society |
| Equality | The property of distributing economic prosperity uniformly among society's members |
| Equality | The property of distributing prosperity uniformly among the members of society |
| Producer surplus | The amount a seller is paid for a good minus the seller's cost of providing it |
| Excludability | The property of a good whereby a person can be prevented from using it |
| Rivalry in consumption | The property of a good whereby one person's use diminishes other people's use |
| Private goods | Goods that are both excludable and rival in consumption |
| Public good | A good that we may all use at the same time without diminishing another's benefits |
| Public goods | Goods that are neither excludable nor rival in consumption |
| Common resources | Goods that are rival in consumption but not excludable |
| Cost-benefit analysis | A study that compares the costs and benefits to society of providing a public good |
| Free rider | A person who receives the benefit of a good but avoids paying for it |
| Tragedy of the Commons | A parable that illustrates why common resources get used more than is desirable from the standpoint of society as a whole |
| club goods | goods that are excludable but not rival in consumption |
Created by:
romoore245
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