Econ CBA1 (Unit 2) Flashcards

Front

A set of graphs, charts, or equations used to explain a scenario and predict economic behaviors.

Back

economic model

Front

The minimum wage, the lowest legal price that can be paid to most workers, is an example of this.

Back

price floor

Front

Monetary value of a product.

Back

price

Front

A situation in which quantity demanded is greater than quantity supplied

Back

shortage

Front

In a competitive market, prices tend to move toward and settle at a stable point that we refer to as market ____________.

Back

equilibrium

Front

What will happen to the demand for generators after a massive tropical storm causes flooding across the Gulf Coast?

Back

demand shifts right

Front

At a given price, a surplus occurs when

Back

the quantity supplied is greater than the quantity demanded

Front

Example of a price ceiling

Back

rent control

Front

Price ceilings that are artificially low are likely to create

Back

a shortage

Front

If there is a surplus in a market, the price is most likely to

Back

decrease