Shared Flashcard Set

Details

Chapter 5 Parkin & Bade
terms
10
Economics
Undergraduate 1
12/08/2015

Additional Economics Flashcards

 


 

Cards

Term
command system
Definition
A ______________allocates resources by the order (command) of someone in authority.
Term
Consumer surplus
Definition
________________ is the excess of the benefit received from a good over the amount paid for it.
Term
Producer surplus
Definition
____________________is the excess of the
amount received from the sale of a good or service over the cost of producing it.
Term
total surplus
Definition
The sum of consumer surplus and producer surplus is called ___________________.
Term
market failure
Definition
Markets are not always efficient, and when a market is inefficient, we call the outcome _________________.
Term
deadweight loss
Definition
We measure the scale of inefficiency by , ____________________ which is the decrease in total surplus that results from an inefficient level of production.
Term
transactions
costs
Definition
Economists call the costs of the services that enable a market to bring buyers and sellers together ___________________.
Term
utilitarianism
Definition
__________________ is a principle that states that we should strive to achieve “the greatest happiness for the greatest number.”
Term
big tradeoff
Definition
Recognizing the costs of making income transfers leads to what is called the ___________, which is a tradeoff between efficiency and fairness.
Term
symmetry principle
Definition
The __________________ is the requirement that people in similar situations be treated similarly.
Supporting users have an ad free experience!