Chapter 6 Vocabulary Flashcards
the monetary value of a product.
Price
system of allocating goods and services without prices.
Rationing
a fuel created from living materials.
Biofuels
a simplified version of a complex behavior expressed in the form of an equation,
graph, or illustration.
Economic Model
price where quantity supplied equals quantity demanded.
Equilibrium Price
quantity of output supplied that is equal to the quantity demanded at the
equilibrium price.
Equilibrium Quantity
situation where quantity supplied is greater than quantity demanded at a given price.
Surplus
situation where quantity supplied is less than quantity demanded at a given price.
Shortage
the highest legal price that can be charged for a product.
Price Ceiling
the lowest legal price that can be paid for a product.
Price Floor
price floor for agricultural products set by the government to stabilize farm prices.
Target Price
loan that carries neither penalty nor further obligation to repay.
Nonrecourse Loan
