| A | B |
|---|
| PRICE | A TOOL FOR DISTRIBUTING GOODS AND SERVICES THROUGHOUT THE ECONOMY |
| DISEQUILIBRIUM | OCCURS WHEN THE QUANTITY DEMANDED DOES NOT EQUAL THE QUANTITY SUPPLIED |
| SHORTAGE | WHEN THE QUANTITY DEMANDED EXCEEDS THE QUANTITY SUPPLIED |
| SURPLUS | WHEN THE QUANTITY SUPPLIED EXCEEDS THE QUANTITY DEMANDED |
| RATIONING | DIVIDING UP GOODS AND SERVICES USING A CRITERIA OTHER THAN PRICE |
| PRICE CEILING | A GOVERNMENT SET PRICE BELOW THE EQUILIBRIUM POINT, CREATES A SHORTAGE |
| PRICE FLOOR | A GOVERNMENT SET PRICE ABOVE THE EQUILIBRIUM POINT, CREATES A SURPLUS |
| STIFLES | TO RESTRICT OR ELIMINATE PROGRESS |
| BLACK MARKET | WHEN BUSINESS IS CONDUCTED WITHOUT REGARD FOR GOVERNMENT CONTROLS ON PRICE, QUALITY, OR QUANTITY |
| MINIMUM WAGE | A PRICE FLOOR SET ABOVE THE EQUILIBRIUM POINT SET THE LOWEST ACCEPTABLE WAGE TO BE PAID FOR AN HOUR OF WORK |
| DETERIORATION | A WORSENING OF CONDITIONS |
| SUBSIDY | A GOVERNMENT PAYMENT TO SUPPORT A PARTICULAR COMPANY OR INDUSTRY |
| MARKET FAILURES | A LIMITATION OF THE PRICE BASED SYSTEM |
| IMPERFECT COMPETITION | A LACK OF COMPETITION AMONG SELLERS FOR BUSINESS (MONOPOLIES) |
| IMPERFECT INFORMATION | A LACK OF KNOWLEDGE OF THE PRODUCT BY THE CONSUMERS |
| SPILLOVER COSTS | COSTS THAT ARE PASSED ON TO THE CONSUMER AS A RESULT OF INDUSTRIAL REGULATION |
