ECONOMICS REVIEW

3. a measure of howconsumers react to a change in price
4. economic and political system in which factors of production are collectively owned and directed by the state
8. quantity demanded is greater than quantity supplied
9. the struggle among sellers to attract consumers with the best products at the lowest prices
10. the monetary value of a product
14. lowest legal price a seller can charge
16. small number of firms with large control over an industry
19. the tools, equipment, machinery, and factories used in the production of goods and services
20. a flaw in the market leads to inefficient allocation of goods
22. risk-taking individual in search of profits
23. goods that can be used in place of another
24. goods that consumers demand more of when their incomes increase

1. firms producing identical products
2. uncompensated side effects that either harm or benefit a third party
5. one seller, lots of buyers
6. economic activity is based on ritual, habit, or custom
7. the desire to own something and the ability to pay for it
8. condition that results from society not having enough resources to produce all the things people would like to have
11. using resources in such a way as to maximize the production or output of goods and services
12. monetary value of all final goods, services, and structures produced within a country’s national borders during a one-year period
13. difference between the revenue from sales and the full opportunity cost of resources involved in producing the sales
15. the study of how people try to satisfy needs and wants through the use of scarce resources
17. highest legal cost a seller can charge
18. goods that go together
21. quantity supplied greater than quantity demanded