Microeconomics 9

The Analysis of Competitive Markets

0.0 (0)

Set of flashcards Details

Flashcards	11
Language	English
Category	Macro-Economics
Level	University
Created / Updated	17.11.2012 / 13.03.2015
Weblink	https://card2brain.ch/box/microeconomics_9
Embed	<iframe src="https://card2brain.ch/box/microeconomics_9/embed" width="780" height="150" scrolling="no" frameborder="0"></iframe>

Card list

welfare effects

Keyboard commands:

= turn,

= for-/backward,

= scroll

Gains and losses to consumers and producers.

deadweight loss

Keyboard commands:

= turn,

= for-/backward,

= scroll

Net loss of total (consumer plus producer) surplus

welfare benefit

Keyboard commands:

= turn,

= for-/backward,

= scroll

consumer + producer surplus measure the welfare benefit of a competitive market

economic efficiency

Keyboard commands:

= turn,

= for-/backward,

= scroll

Maximization of aggregate consumer and producer surplus

market failure

Keyboard commands:

= turn,

= for-/backward,

= scroll

Situation in which an unregulated competitive market is inefficient because prices fail to provide proper signals to consumers and producers.

2 reasons for market failure

Keyboard commands:

= turn,

= for-/backward,

= scroll

- Externalities (Action taken by prod. or cons. which affects other parties but isn't in the market price)

- Lack of information

price support

Keyboard commands:

= turn,

= for-/backward,

= scroll

Price set by government above free-market level and maintained by governmental purchases of excess supply.

import quota

Keyboard commands:

= turn,

= for-/backward,

= scroll

Limit on the quantity of a good that can be imported.

tariff

Keyboard commands:

= turn,

= for-/backward,

= scroll

Tax on an imported good.

specific tax

Keyboard commands:

= turn,

= for-/backward,

= scroll

Tax or a certain amount of money per unit sold.

subsidy

Payment reducing the buyer's price below the seller's price; i.e., a negative tax.

1 / 11

Card list

Study

Microeconomics 9

Create or copy sets of flashcards

Create or copy sets of flashcards

Log in to see all the cards.

SWITCHaai

Office 365

Edulog

Apple ID

Google