Across
- 2. The idea that the market, through the self-interest of individuals and firms, can coordinate economic activity and allocate resources efficiently without direct government intervention.
- 3. In economics, this is achieved when production is aligned with the preferences of consumers and producers, typically where the marginal benefit of a good equals its marginal cost, maximizing social welfare.
- 4. Goods that are nonexcludable (costly or impossible to prevent others from using) and nonrivalrous (one person's use doesn't diminish another's).
- 6. An economic situation where the free market's distribution of goods and services is inefficient, meaning individual rational behavior doesn't lead to rational outcomes for the group.
- 8. The principle that consumers, through their purchasing decisions, determine the demand for goods and services, thereby influencing what is produced and how it is produced.
- 9. Commodities that an individual or society should have based on some concept of benefit, rather than just ability and willingness to pay.
- 10. Goods or services whose consumption is considered unhealthy, degrading, or socially undesirable due to perceived negative effects on the consumers themselves.
- 12. Refers to economic inequality, which is the unequal distribution of income, wealth, and opportunity among different groups in society.
- 13. A situation where capital is able to move between countries without cost, leading to equal risk-adjusted returns to capital in all countries.
- 14. In economics, a side effect or consequence of an activity that is not reflected in its cost and not primarily borne by those directly involved.
Down
- 1. A market structure characterized by a large number of buyers and sellers, identical products, free entry and exit for firms, and perfect knowledge among participants.
- 5. A concept in economics where all participants in a market have knowledge of all relevant information in the system.
- 7. In economics, these are the inputs used to produce goods and services, also known as factors of production (land, labor, capital, and entrepreneurship).
- 11. A body or entity with the power to manage a political unit, organization, or state, making authoritative decisions binding on residents and businesses within its boundaries.