Microeconomics Concepts: Incentives, Competition, and Demand

Vocabulary flashcards reviewing core microeconomics principles, including market competition, economic incentives, regulatory impacts on behavior, and the relationship between price and quantity demanded.

Competition and Customer Service

Restaurants put more effort into providing friendly, fast service because they must compete to attract and keep customers, while internet providers face less pressure because customers have fewer alternatives.

Land Use Restrictions and Incentives

Landowners may quickly cut down trees upon spotting an endangered bird because endangered species laws can restrict land use, leading landowners to remove habitat to avoid losing control of the land.

Economics

A field of study that is all about understanding incentives.

Incentivizing Safe Driving

A method to encourage better driving, most directly achieved by lowering insurance rates for drivers with strong records of safe driving.

Quantity Demanded

The amount of a good consumers are willing to buy, which decreases when the price of a good increases.