Oligopoly is derived from the Latin ‘olígoi’ – meaning “few”, and ‘pōléō’ – meaning “to sell”. So loosely translated, it means ‘few sellers’. This is a key characteristic of oligopolistic markets as it is defined by a few firms dominating the market.
A tariff is an import tax on goods coming into a country. So when a good arrives at customs from sea, plane, or motor vehicle, an import tax is due based upon the current ‘schedule’.
Supply and demand. Demand and supply. However you call it, they both interact with each other. So what is supply and demand? Simply put, supply and demand relates to the relationship between, the amount of products/services produced, the amount that people want, and the impact that has on prices.
Opportunity cost is the cost of taking one decision over another. That can come in the form of time, money, effort, or ‘utility’.
Adverse selection occurs when either the buyer or seller has more information about the product or service than the other. In other words, the buyer or seller knows that the products value is greater than its worth.
Economics is the study of scarce resources that have alternate uses. In other words, how resources are effectively deployed. This covers the production, distribution, and consumption of goods as well as how individuals, businesses, and governments interact to allocate those resources efficiently.
A consumer surplus is defined as the gap between what consumers are able and willing to pay, and the actual price paid. In other words, you may be willing to spend $5 on a Dunkin’ Donut, but you only pay $3 for it.
According to the Collins Dictionary, a free market is an economic system that allows supply and demand to regulate prices, wages, etc, rather than government policy. To be defined as a free market, government must not be involved at any point during the exchange. This means that there is no government intervention, whether in the form of subsidies, tariffs and quotas, or regulation.
