Economics Vocabulary Chapter 6
Terms
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- the monetary value of a product as established by supply and demand
- price
- system under which an agenc such as government decides everyone's "fair" share
- rationing
- ticket or receipt that entitles the holder to obtain a certain amount of a product
- ration coupon
- partial refund of the original price of the product
- rebate
- set of assumptions that can be listed in a table, illustrated with a graph, or even stated algebraically
- economic model
- situation in which prices are relatively stable, and the quantity of goods or services supplied is equal to the quantity demanded
- market equilibrium
- situation in which the quantity supplied is greater than the quantity demanded at a given price
- surplus
- situation in which the quantity demanded is greater than the quantity supplied at a given price
- shortage
- the price that "clears the market" by leaving neither a surplus nor a shortage at the end of the trading period
- equilibrium price
- maximum legal price that can be charged for a product
- price ceiling
- lowest legal wage that can be paid to most workers
- minimum wage
- lowest legal price that can be paid for a good or service
- price floor
- price floor for farm products
- target price
- loan that carries neither a penalty nor further obligation to repay if not paid back
- nonrecourse loan
- check sent to producers that makes up the difference between the actual market price and the target price
- deficiency payment