Details

Title: CHAP 4 ECON 2020

Description: Final Exam Flashcards

Total Flash Cards: 11

Created: 05/04/2009 14:34:48

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Additional Economics Flashcards

Cards in this set:

Term
Consumer Surplus
 Definition
The difference between the highest price a consumer is willing to pay and the price the consumer actually pays.
Term
Marginal Benefit
 Definition
The additional benefit to a consumer from consuming one more unit of a good or service.
Term
Marginal Cost
 Definition
The additional cost to a firm or producing one more unit of a good or service.
Term
Producer Surplus
 Definition
The difference between the lowest price a firm would be willing to accept and the price it actually receives.
Term
Economic Surplus
 Definition
The sum of consumer surplus and producer surplus.
Term
Deadweight Loss
 Definition
The reduction in economic surplus resulting from a market not being in competitive equilibrium.
Term
Economic Efficiency
Definition
A market outcome in which the MB to consumers of the last unit produced is equal to the MC of production and in which the sum of CS and PS is at a maximum.
Term
Price Floor
 Definition
An example of government intervention in which a minimum price is place on a given good or service in an effort to encourage production.
Term
Price Ceiling
 Definition
An example of government intervention where a maximum price is set the discourage exploitation of consumers.
Term
Black Market
 Definition
A market in which buying and selling take place at prices that violate government price regulations.
Term
Tax Incidence
 Definition
The actual division of the burden of a tax between buyers and sellers in a market.