Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
17 Cards in this Set
- Front
- Back
economic efficiency
|
a situation where no one in society can be made better off without making someone else worse off
|
|
technical efficiency
|
producing at a point on the PPC
|
|
market imperfection
|
a lack of efficiency that results from imperfect imformation in the marketplace
|
|
externalities
|
the costs of benefits of a transaction that are borne be someone not directly involved in the transaction
|
|
public goods
|
a good whose consumption by one person does not diminish the quantity or quality available for others
|
|
private property right
|
the limitation of ownership to an individual
|
|
free ride
|
the enjoyment of benefits of a good by a producer or consumer without having to pay for the good
|
|
monopoly
|
a situation where there is only one producer of a good
|
|
business cycle
|
fluctuations in the economy between growth and stagnation
|
|
rent seeking
|
thee use of resources simply to transfer wealth from one group to another without increasing production or total wealth
|
|
public choice
|
the study of how government actions result from the self-interested behaviors of voters
|
|
government role
|
the role of government may stem from the inefficiencies that exist in a market system
|
|
monetary policy
|
policy directed toward control of money and credit
|
|
federal reserve
|
the central bank of the united states
|
|
fiscal policy
|
policy directed toward government spending and taxation
|
|
centrally planned economy
|
an economic system in which the government determines what goods and services are produced and the prices at which they are sold
|
|
market economy
|
relies on prices and individual actions to solve economic problems
|