economic Flashcards
in market economies what gets exchanged in the product market?
the 3 inputs required to manufacture goods and services
in market economies what gets exchanged in the factor market ?
land (natural resources) labor (human efforts) capital (tools)
what are firms
procedures of all goods/ services that hire/pay for fop
in what ways are firms significant to the market economy
bring demand for fop, supply goods/ services to market
what are households
owners of fop who are consumers of all good services
in what ways are households significant to the market economy
bring demand for goods / services, supply fop to market
what is a command economy
govt controls what is produced, how it is and for whom
what are key indicators that an economy is a command economy
no competition disequilibrium in market occurs often
what is a free market economy
buyers and sellers determined the what how and for whom
what are the key indicators that an economy is a free market economy
no monopolies exist, efficient at attaining equilibrium
what is a mixed economy
public and private sector decide what how for whom (govt and individuals
what are key indicators that an economy is mixed economy
some monopolies less efficient attaining equilibrium
what are price controls
govr limits on the amount charged for a good/ service
why do government imposes price controls
used to offset oriblems created at equilibrium prices
what is a price floor
legal minimum that can be charged for a good/service
what are some affects of price floors
price set above equilibrium resulting in excess supply
what is price ceiling
legal maximum that can be charged for a good/ service
what are some effects of price cealings
price set below equilibrium results in excess demand
