Chapter 4/5 Flashcards
Profit?
a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
Quantity supplied?
the quantity of a commodity that producers are willing to sell at a particular price at a particular point of time.
Determinant of supply?
When price changes, quantity supplied will change. That is a movement along the same supply curve. When factors other than price changes, supply curve will shift. Here are some determinants of the supply curve.
tax?
a compulsory contribution to state revenue, levied by the government on workers’ income and business profits or added to the cost of some goods, services, and transactions.
subsidy?
a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
regulation?
a rule or directive made and maintained by an authority.
Market equilibrium?
Market equilibrium is a market state where the supply in the market is equal to the demand in the market. The equilibrium price is the price of a good or service when the supply of it is equal to the demand for it in the market.
Surplus?
an amount of something left over when requirements have been met; an excess of production or supply over demand.
Shortage?
a state or situation in which something needed cannot be obtained in sufficient amounts.
Price ceiling?
a situation when the price charged is more than or less than the equilibrium price determined by market forces of demand and supply. is the highest price that a government allows a good to be sold for.
Price floor?
is a situation when the price charged is more than or less than the equilibrium price determined by market forces of demand and supply.is the lowest price that a government allows a good to be sold for.
Minimum wage?
the lowest wage permitted by law or by a special agreement (such as one with a labor union).
Rationing?
Apr 27, 2014 - rationing, government policy consisting of the planned and restrictive allocation of scarce resources and consumer goods, usually practiced during times of war, famine, or some other national emergency.
Black market?
an illegal traffic or trade in officially controlled or scarce commodities.
“they planned to sell the meat on the black market”
