Quiz #13 Vocab Flashcards Preview

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Flashcards in Quiz #13 Vocab Deck (14):
0

Theoretical good for which there isn't upward sloping demand curve: as the price rises, so does the quantity demanded

Giffen good

1

Holding all other factors or conditions constant so as to see the impact of changing only one variable

Ceteris Parabis

2

As the price of a good decreases, consumers feel' richer' and can afford more of it

Income effect

3

As the price of a good decreases, a consumer may buy more of this good relative a more expensive substitute good

Substitution effect

4

The optimal point for society when any further improvement for one group must come at the expense of another group

Pareto efficiency

5

Public goods with private goods characteristics: they maybe price excludable or share distributive characteristics

Quasi-public goods

6

In the short run, a firm will suspend operations when the selling price does not cover average variable cost

Shut down criterion

7

The level of output where the firms marginal revenue equals marginal cost

Profit maximizing criterion

8

Market situations where the consumer is better served by a well regulated monopoly: competition would prevent the benefit of economics of sale

Natural monopolies

9

The quotation mark cost quotation mark of time spent waiting in lines or in other forms of congestion on trying to acquire a good or service; typically associated with shortages or bad customer service

Queuing cost

10

Term used for the price of capital or productive machinery

Rental rate

11

Concept that all businesses exist in order to make money or turn a profit

Profit motive

12

A process of reallocating wealth from higher earners to lower ones

Redistribution

13

The act of buyers and sellers engaging in trade of their own free will and each receiving some kind of game in the process

Voluntary exchange