MICRO ECON CHAPTERS 7 - 14

study of how the allocation of resources affects economic well-being

the maximum amount that a buyer will pay for a good

the amount a buyer is willing to pay minus the amount they actually pay for it

the value of everything a seller must give up to produce a good

the property of distributing economic prosperity uniformly among the members of society >_<

the fall in total surplus that results from a market distortion, such as a tax

the price of a good that prevails in the world market

a tax on goods produced abroad and sold domestically

an uncompensated impact of one persons actions on the well-being of a bystander 

altering incentives so that people take account of the external effects of their actions

a tax designed to induce private decision makers to take account of the social costs that arise from a negative externality 

the proposition that if private parties can bargain without cost over the allocation of resources they can solve the problem of externalities on their own 

the costs that parties incur in the process of agreeing to and following through on a bargain 

being able to prevent someone from using a good 

one person's use of a good diminishes other peoples use of it

goods that are both rival in consumtion and excludable 

goods that are neither rival in consumption or excludable 

goods that are rival in consumption but not excludable 

good that are excludable but not rival in consumption 

a person who recieves the benefit of a good but avoids paying for it

a study that compares the costs and benefits to society of providing a public good

parable this shows why common resources are used more than is desirable from the standpoint of society as a whole 

an excess of government spending over government receipts 

an excess of government receipts over government spending

total taxes paid divided by total income 

the extra taxes paid on an additional dollar of income 

the idea that people should pay taxes based on the benefits they recieve from government services 

the idea that taxes should be levied on a person according to how well that person can shoulder the burden

the idea that taxpayers with a greater ability to pay taxes should pay larger amounts 

the idea that taxpayers with simlar abilities to pay taxes should pay the same amount 

a tax for which high income and low income taxpayers pay the same fraction of income

a tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers

a tax where high income taxpayers pay a larger fraction of their income than do low income taxpayers

the amount a firm receives for the sale of its output

the market value of the inputs a firm uses in production 

total revenue minus the total cost

input costs that require an outlay of money by the firm

input costs that do not require an outlay of money by the firm 

total revenue minus total cost including both explicit and implicit costs

total revenue minus total explicit costs

the relationship between quantity of inputs used to make a good and the quantity of output of that good

the increase in output that arises from an additional unit of input

when the marginal product of an input declines as the quantity of the input increases

costs that do not vary with the quantity of output produced 

costs that vary with the quantity of output produced 

total cost divided by the quantity of output

fixed cost divided by the quantity of output

variable cost divided by the quantity of output

the increase in total cost that arises from an extra unit of production

the quantity of output that minimizes average total cost

the property where long-run average total cost falls as the quantity of output increases

the property where long-run average total cost rises as the quantity of output increases

the property where long-run average total cost stays the same as the quantity of output changes 

a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker 

total revenue divided by the quantity sold

the change in total revenue from an additional unit sold

a cost that has already been committed and connot be recovered