Chapter 6: Prices and Decision Making

Front

The point where quantity supplied equals quantity demanded.

Back

market equilibrium

Front

The monetary value of a product established by supply and demand

Back

price

Front

The system where a central authority decides how much any person receives.

Back

rationing

Front

Which is not a problem with rationing? Options: Most feel their share is too small., Expensive to administrate., Inefficient due to no control of resources., Less incentive to innovate or improve.

Back

Inefficient due to no control of resources.

Front

Maximum price allowed by law for a product.

Back

price ceiling

Front

Minimum price allowed by law for a product.

Back

price floor

Front

The process where farmers are given money to repay and guaranteed a specific price on their crop.

Back

loan support

Front

When the quantity demanded is more than the quantity supplied.

Back

shortage

Front

When the quantity supplied is more than the quantity demanded.

Back

surplus

Front

Jimmy is a farmer, and his crop is selling for significantly less than expected. Which program will help him break even?

Back

deficiency payment