loss to the economy due to either oversupply or undersupply, caused by resources being used inefficiently
tax levied on the quantity of a specific good purchased, such as alcohol, gasoline, and cigarettes
characteristic of a good that someone who has not paid for can be prevented from consuming
a consequence of an economic activity on a third party that is not directly involved in the action or decision; either a cost or a benefit
a market in which prices are determined solely through the interaction of supply and demand for goods and services
a lack of complete knowledge by one or both parties about factors that would affect decision making
a situation in which an entity takes on a risk because they are protected against that risk
an additional benefit produced by an economic activity that accrues to people not directly involved in the economic activity
the maximum price, below the equilibrium price, that a seller can charge for a good or service, which causes a shortage of the good. Price ceilings placed above equilibrium are not effective.
a minimum or maximum price set such that it cannot adjust to equilibrium levels (the intersection of the supply and demand curves)
the minimum price, higher than the equilibrium price, that a seller can legally charge for a good or service, which causes a surplus of the good. Price floors placed below equilibrium are not effective.
product or service that is equally available to all citizens, regardless of their ability to pay
a compulsory contribution required by the government and levied on income, profits, and some goods and services