Glossary Terms:

Who Knows What Inefficiencies Lurk in the Hearts of Rent Controlled Housing Markets? The Shadow Market Knows!

Glossary terms from:
http://www.econedlink.org/e47


Alternative

One of many choices or courses of action that might be taken in a given situation.

Demand

The quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time.

Distribution

The allocation or dividing up of the goods and services a society produces.

Economics

The study of how people, firms and societies choose to allocate scarce resources with alternative uses.

Housing

Accommodation in houses, apartments, etc.

Incentive

Any reward or benefit, such as money, advantage or good feeling, that motivates people to do something.

Income

Payments earned by households for selling or renting their productive resources. May include salaries, wages, interest and dividends.

Inflation

A rise in the general or average price level of all the goods and services produced in an economy. Can be caused by pressure from the demand side of the market (demand-pull inflation) or pressure from the supply side of the market (cost-push inflation).

Interest

Money paid regularly, at a particular rate, for the use of borrowed money.

Lender

One who lends; may be an individual or a business.

Markets

Places, institutions or technological arrangements where or by means of which goods or services are exchanged. Also, the set of all sale and purchase transactions that affect the price of some good or service.

Money

Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.

Monopoly

A market structure in which there is a single supplier of a good or service. Also, a firm that is the single supplier of a good or service for which there are no close substitutes; also known as a monopolist.

Mortgage

A special type of loan for the purchase of a house or other real estate.

Perfect Competition

A market structure in which a large number of relatively small firms produce and sell identical products and in which there are no significant barriers to entry into or exit from the industry. Firms in perfect competition are price takers and in the long run will earn only normal profits.

Price

The amount of money that people pay when they buy a good or service; the amount they receive when they sell a good or service.

Price Ceiling

A legally established maximum price that may be charged for a good or service.

Sale

An exchange of goods or services for money.

Shortage

The situation that results when the quantity demanded for a product exceeds the quantity supplied. Generally happens because the price of the product is below the market equilibrium price.

Supply

The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time.