Hubbard O'Brien Microeconomics Chapter 4 vocab
Studied by 1 person
Learn
Practice Test
Spaced Repetition
Match
Flashcards1/10
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced |
|---|
No study sessions yet.
11 Terms
Price Ceiling
a legally determined maximum price that sellers may charge
Price Floor
a legally determined minimum price that sellers may receive
consumer surplus
the difference between the highest price a consumer is willing to pay for a good or service and the actual price the consumer pays
marginal benefit
the additional benefit to a consumer from consuming one more unit of a good or service
marginal cost
the additional cost to a firm of producing one more unit of a good or service
producer surplus
the difference between the lowest price a firm would be willing to accept for a good or service and the price it actually receives
economic surplus
the sum of consumer surplus and producer surplus
deadweight loss
the reduction in economic surplus resulting from a market not being in competitive equilibrium
black market
a market in which buying and selling take place at prices that violate government price regulations
tax incidence
the actual division of the burden of a tax between buyers and sellers in a market
economic efficiency
a market outcome in which the marginal benefit of the last good produced for the consumers is equal to that of the producers. In addition, the sum of producer and consumer surplus is at it’s maximum.