price Flashcards
1
Q
price
A
the sum of money you have to pay for a good or service. Determined by the interaction of supply and demand
2
Q
efficiency
A
the optimal production and distribution of scarce resources
3
Q
equilibrium price and quantity
A
where the quantity supplied exactly matches the quantity demanded- no excess no loss
4
Q
allocation of resouces
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 force
A
factors that determine price levels and the availability of goods and services in an economy without government intervention
