ch 4 macroeconomics

A legally established maximum price a seller can charge

A legally established minimum price a seller can be paid. (minimum wage)

A situation in which market equlibrium result in too few or too many resources used in the production of goods or services. This inefficiency may justify goverment intervention.

• Lack of competition
• Externalities
• Public Goods
• Income Inequality

A cost or benefit imposed on people other than the consumers and producers of a good or service.(pollution)

• A good or services with two properties:
• Users collectively consume benefits and,
• There is no way to bar people who do not pay from consumming the good or service.