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AP Micro: 6.1 Introduction Vocabulary

Name: ___________________________________
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Across
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When either the buyer or the seller has more information than the other, economists say there is _____ information which leads to adverse selection.
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Monopoly, monopolistic competition, and Oligopoly market structures give firms ________.
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Allocative efficiency is the ______ level of production when the firm and the customer internalize all public and private costs and benefits.
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The additional benefit to society as a whole as a result of the production of the next additional unit.
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The socially optimal level of production for a good with negative externalities will be at a quantity where the MSB ________ or is equal to the MSC.
Down
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The extra cost to society as a whole for the production of the next additional unit.
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The government might choose to pay a _______ to a firm to increase the quantity produced if there was too little of the good being produced.
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When firms do not produce at the point of allocative efficiency and it results in a loss of consumer and/or producer surplus.
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The positive or negative effect of a transaction which is felt by a third party who is not involved in the transaction (not the buyer or seller).
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To eliminate deadweight loss, ______ policies might include a tax, subsidy, or environmental regulation.