Economics Chapter on Market Mechanisms

The method where buyers bid against each other to purchase a product, influencing prices.

The price at which quantity demanded equals quantity supplied, meaning no surplus or shortage exists.

The price at which the market is settled, eliminating shortages and surpluses.

Economic model describing how prices are determined in a market by availability and desire for goods.

A situation where demand exceeds supply, leading to an increase in prices.

A situation where supply exceeds demand, leading to a decrease in prices.

The natural inclination of free markets to reach an equilibrium by adjusting prices based on supply and demand.

The intended decisions of consumers and producers in a market that dictate their behavior and interactions.

Economic systems where transactions and prices are determined by supply and demand.

The expenses incurred during the process of buying or selling goods or services.

Economic issues arising when governments control all economic activities, leading to inefficiencies.

Organized systems or structures that facilitate economic transactions and interactions.

A direct exchange of goods and services without using money.

Money serves as an intermediary in transactions, simplifying exchanges.

Money helps organize and coordinate economic transactions efficiently.

Difficulties faced in transitioning from central planning to market economies in post-Soviet nations.

The process by which buyers' and sellers' plans align to determine prices.

A condition where quantity demanded equals quantity supplied.

The process where prices rise or fall to eliminate shortages or surpluses.

Buyers and sellers agree to terms of trade in a market.

Rarity refers to something being rare, while scarcity is about limited resources available.

The act of stealing food aid meant for needy populations, particularly in crisis situations like the 1990s in Russia.

A coordinated approach to managing the distribution of resources such as food, ensuring they reach intended recipients efficiently.

An economic system where goods and services are directly exchanged without the use of money.

A visual representation showing the relationship between the quantity of a product supplied and the quantity demanded at various prices.

Changes in factors that can cause the supply curve to shift left (decrease) or right (increase), impacting market price and quantity.

Factors that cause the demand curve to shift, affecting how much of a product consumers are willing to buy at different prices.

The time it takes for the market to correct itself in response to changes in supply or demand, affecting prices and quantities exchanged.

The prediction of how an event will affect market prices, considering the magnitude of the shift in supply or demand.

A method where licenses are awarded to applicants through a lottery rather than to the highest bidder.

A situation where the demand for a product exceeds its available supply, causing scarcity.

More demand for camping spaces over motel rooms due to limited supply during peak seasons.

Aggressive behavior from competitors trying to eliminate each other using extreme actions.

Refers to the limited availability of a resource, impacting its value.

Information conveyed through prices helps allocate scarce resources efficiently in the market.

Government action to fight crime by removing high-value currency from circulation.

Market dynamics demonstrate efficiency in resource allocation compared to central planning.

The situation where individuals compete to buy limited tickets for events, often leading to difficulties in securing them.

Online services that facilitate the buying and selling of event tickets, often at a premium.

The standards used to match available children with prospective adoptive parents.

The mismatch between the number of children available for adoption and the number of families wanting to adopt.

The proposal for a system where human organs could be bought or sold to increase availability.

A proposed system allowing for trade of organs without direct sale, aiming to reduce shortages.

Permits sold by a state allowing individuals to hunt certain animals in specified areas.

Potential outcomes of allowing the sale of human organs, including ethical concerns and increased supply.