Term
| The maximum price a consumer is willing to pay for a good is known as the... |
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Definition
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Term
| An efficient method to allocate resources when the efforts of the participants are hard to monitor and reward directly is a... |
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Definition
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Term
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Definition
| Sum of the quantities demanded by each individual at each price. |
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Term
| Consumer surplus is the... |
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Definition
| Difference between the marginal benefit of a good and the price paid for the good. |
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Term
| Producer surplus is the... |
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Definition
| Difference between producers' revenues and opportunity costs of production. |
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Term
| The marginal cost of a service is... |
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Definition
| Increasing with increased output. |
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Term
| The overproduction of a good means that... |
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Definition
| Marginal social cost exceeds marginal social benefit. |
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Term
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Definition
| The social loss from inefficiency. |
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Term
| If resources are allocated efficiently, this means that... |
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Definition
| The sum of consumer surplus and producer surplus is maximized. |
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Term
| A principle of fairness that emphasizes equality of opportunity is... |
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Definition
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Term
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Definition
| Agree about efficiency but disagree about fairness. |
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Term
| According to Rawl's modified utilitarianism, income should be redistributed until... |
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Definition
| The poorest man is as well off as possible, after incorporating the costs of income transfers. |
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Term
| What applies to the results principle of fairness? |
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Definition
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Term
| A command system can work well to allocate resources when... |
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Definition
| It is easy to monitor activities. |
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Term
| The value of a good is its... |
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Definition
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Term
| The market demand curve is... |
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Definition
| The horizontal sum of all individual demand curves. |
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Term
| The market demand curve is formed by adding the... |
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Definition
| Quantities demanded by each individual at each price. |
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Term
| Consumer surplus is the marginal benefit of a good minus... |
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Definition
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Term
| Consumer surplus equals the area below the demand curve, but... |
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Definition
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Term
| The market supply curve is the _________ of the individual firm supply curves. |
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Definition
| Horizontal sum of individual firms supply curve |
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Term
| The opportunity cost of producing a given quantity of a good is the area... |
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Definition
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Term
| Producer surplus is the marginal cost of producing a good minus its... |
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Definition
| Marginal cost of production |
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Term
| Adam Smith's "invisible hand" suggests that competitive markets send resources to their... |
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Definition
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Term
| Markets don't always use resources efficiently due to obstacles of efficiency such as... |
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Definition
| Price and quantity regulations, monopolies, externalities, and high transaction costs. |
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Term
| Deadweight loss is a loss to... |
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Definition
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Term
| Utilitarianism is an example of... |
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Definition
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Term
| If we think of the total income of a society as a pie, a more equally shared pie results in a... |
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Definition
| Smaller pie, due to the "big tradeoff" between efficiency and fairness. |
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Term
| In economic life, the symmetry principle translates into... |
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Definition
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