Chapter 4 Flashcards
1
Q
Resource to product
A
Will always shift the supply curve
2
Q
Intermediary
A
Middleman bringing together lenders and borrowers
3
Q
Interest rates
A
Connects present consumption with future opportunity costs
4
Q
Demand curve in the loanable funds market is
A
The borrow curve
5
Q
The supply curve in the loanable funds market is
A
The saver/lender curve
6
Q
Product to Resource
A
Results in a change of the demand curve
7
Q
Loanable funds market price
A
Interest rate
8
Q
Appreciate
A
Value of something went up
9
Q
Foreign exchange market curves
A
Opposite curves shift in the same direction
10
Q
Price controls
A
Government mandated prices set by law
11
Q
Price ceiling
A
Max price set by law
12
Q
Price floor
A
Min price set by law
13
Q
Price controls results in
A
Nonprice competition
14
Q
Non-price rationing
A
- Discrimination
- Buyers do favors for sellers
- Low quality goods, decrease size poor quality
- Lines
- Black markets
15
Q
Results in price floor
A
- Unemployment
- Discrimination against unskilled teens and minorities
- Non price rationing
- Black market
