Econ Chapter 6

Question 1

Monetary value of a product as established by supply and demand

Answer 1

Price

Question 2

permit allowing holder to receive a given amount of a rationed product

Answer 2

Ration Coupon

Question 3

simplified version of a complex concept or behavior expressed in the form of an equation, graph, or illustration

Answer 3

Economic Model

Question 4

price where quantity supplied equals quantity demanded; price that clears the market

Answer 4

Equilibrium Price

Question 5

maximum legal that can be charged for a product

Answer 5

Price Ceiling

Question 6

lowest legal wage that can be paid to most workers

Answer 6

Minimum Wage

Question 7

agricultural loan that carries neither a penalty nor further obligation to repay if not paid back

Answer 7

Nonrecourse Loan

Question 8

system of allocating goods and services without prices

Answer 8

Rationing

Question 9

partial refund of the original price of a product

Answer 9

Rebate

Question 10

situation where quantity supplied is less than quantity demanded at a given price

Answer 10

Shortage

Question 11

situation where quantity supplied is greater than quantity demanded at a given price

Answer 11

Surplus

Question 12

lowest legal price that can be charged for a product

Answer 12

Price Floor

Question 13

price floor for agricultural products set by the government to stabilize farm incomes

Answer 13

Target Price

Question 14

cash payment making up the difference between the market price and the target price of an agricultural crop

Answer 14

Deficiency Payment