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