Chapter 8: The Power and Limits of a Market

________ is an economic system that uses public property ownership and private resource allocation decisions.

________ is an economic system that uses private property ownership and public resource allocation decisions.

________ occurs when the full costs or benefits of a trade are not known to all of the parties engaged in the trade.

A(n) ________ is a market with only one seller of a good or service.

________ means having a stable standard of living.

Trades that generate equilibrium between buyers and sellers in ________ maximize the consumer and producer surplus derived from production and consumption.

distributes goods and services based on willingness and ability to pay rather than on an equal distribution of goods and services among members of society.

________ use governmental regulation or central planning to allocate resources.

In ________, individual people, households, or businesses have tradable ownership rights to resources.

In ________, the people who have the highest willingness and ability to pay for a good or service obtain the good or service from suppliers who have comparative advantage in its production and are able to produce at the lowest cost.

Choices about what to do with resources are resource allocation decisions.

Choices about who owns resources are resource ownership or property rights decisions.