Vocab chapt20

rules and laws to restrict the behaviour of individual and firm.

where government intervention leads to net welfare loss/misallocation of resources

when rising demand drives prices beyond expectation/true value/reasonable value/long-run sustainable level

buying/selling financial product/asset in the expectation of future further increase/decrease in the price for profit

where one party engage in risky event/activity when the cost of the risky behavior is born by another party

where one party of buyer or seller has more information than another party

side effect/impact on third party of consumption/production of goods and services

when the price mechanism leads to an inefficient allocation of resources

A person’s consumption of the goods does not reduce the amount available for others

People can consume the product without paying for it