Economics Chapter 6

Dividing up scarce goods without concern for prices

When quantity supplied exceeds quantity demanded

A sudden shortage of goods

What makes the market behave inefficiently?

Maximum amount that can be legally charged for a good or service

The government always intervenes in the market system.

What happens when the quantity demanded is less than the equilibrium supply?

Costs of production that affect people who have no control over production

What happens when the quantity supplied is less than the equilibrium supply?

Why did the government use rationing for some food and goods during World War II?

Which of the following is NOT an advantage of a price-based system?

When the government holds down the price of apartments

Why did Communist governments use a command economic system?

Disequilibrium occurs when

When buyers purchase exactly as much as sellers want to sell

When does a surplus exist?

A government-imposed minimum for a good or service

Where there is excess supply

When supply and demand meet

If the equilibrium wage is $6.00 an hour and the minimum wage is $8.90, the result is