blobs of information Flashcards
3 economic decisions
what to produce , why we produce , who is to benefit
demand curve is drawn in the assumption that
factors affecting demand , other than price remain constant
if a firm average revenue curve experiences a movement from a non-price determinant , it can be also said that it
experiences a movement of its demand curve
there could be taxes on butter due to its negative externalities
a PURE public good is always
available for use no matter the number of consumers using the good
define the term social benefits
the overall benefits to society from economic activity, taking into account private and external benefits
market equilibrium definition
when there is no tendency for the market prove to change
economic welfare definitions
the economic well being of an individual, group or society as a whole
when a monopoly firm takes over , they most likely will raise prices
Monopoly is an example of market failure because firms with monopoly power
may produce lower output , less efficiently , than would be supplied by a competitive market
over production of a good implied that it is a demerit good even if the question states that it’s a merit good
when considering the distribution of income and wealth …
a value judgment if made when stating whether distribution of income is equitable
market mechanism definition
the process through which markets solve the problem of allocating scarce resources between competing users
