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