1/9
A collection of vocabulary flashcards covering key concepts related to perfect competition and the invisible hand in microeconomics.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No analytics yet
Send a link to your students to track their progress
Invisible Hand
The concept that individual self-interests in a free market lead to efficient allocation of resources.
Perfect Competition
A market structure where many firms offer a homogeneous product, leading to efficient outcomes.
Economic Surplus
The sum of consumer and producer surplus, representing the total benefit to society from market transactions.
Consumer Surplus
The difference between what consumers are willing to pay and what they actually pay.
Producer Surplus
The difference between what producers are willing to accept for a good and the actual price they receive.
Pareto Efficiency
A situation where no one can be made better off without making someone else worse off.
Social Surplus
The total overall welfare in the economy, calculated as consumer surplus plus producer surplus.
Deadweight Loss
The loss of economic efficiency when the equilibrium outcome is not achievable or not achieved.
Resource Allocation
The process of distributing resources among various uses, driven by market forces in perfect competition.
Equity
The fairness or justice in the distribution of resources and welfare in society.