Price Flashcards
1
Q
Price
A
The sum of money you have to pay for a good or service. It is determined by the interaction of supply and demand.
2
Q
Efficiency
A
The optimal production and distribution of scarce resource
3
Q
Equilibrium price and quantity
A
Where the quantity supplied exactly matches the quantity demanded
4
Q
Allocations of resources
A
How scarce resources are distributed among producers, and how scarce goods and services are allocated among consumers
5
Q
Determination of price
A
The interaction of the free market forces of demand and supply to establish the general level of price for a good or service.
6
Q
Market forces
A
Factors that determine price levels and availability of goods and services in an economy without government intervention
