UNIT 4- ECONOMIC WELLBEING Flashcards
1
Q
Where is the consumer and producer surplus on the supply and demand curve?
A
CONSUMER SURPLUS: above equilibrium
PRODUCER SURPLUS: below equilibrium
2
Q
What is the price ceiling? Give an example.
A
The maximum price dollars are allowed to charge for a good on a service
3
Q
What is a price floor? Give an example.
A
The maximum price buyers are required to pay for a good or service
4
Q
What is a quota? Give an example.
A
A limit set by the government on the quantity of some good that can be bought or sold also known as price control.
5
Q
What is it license?
A
The right, provided by the government to supply a good
