Ch-6

Question 0

Disequilibrium

Answer 0

Describes any price or quantity not at equilibrium

Question 1

Equilibrium

Answer 1

The point at which quantity demanded and quantity supplied are equal

Question 2

Excess Demand

Answer 2

When quantity demanded is more than quantity supplied

Question 3

Excess Supply

Answer 3

When quantity supplied is more than quantity demanded

Question 4

Price Ceiling

Answer 4

A maximum price that can be legally charged for a good or service

Question 5

Rent Control

Answer 5

A price ceiling placed on rent

Question 6

Minimum Wage

Answer 6

A minimum price that an employer can pay a worker for an hour of labor

Question 7

Surplus

Answer 7

Situation in which quantity supplied is greater than quantity demanded; also known as excess supply

Question 8

Search Costs

Answer 8

The financial and opportunity costs consumers pay when searching for a good or service

Question 9

Supply Shock

Answer 9

A sudden shortage of a good

Question 10

Rationing

Answer 10

A system of allocating scarce goods and services using criteria other than price

Question 11

Black Market

Answer 11

A market in which goods are sold illegally