Question

Define the following terms and give an example of each

1a. Negative technological change

1b. Substitutes in production

1c. Price ceiling

1d. Producer surplus

1e. Efficient market

Answer 1

Negative technology effect_ Socialmedia and mobile devices may lead to psychological and physical issues, such as eyestrain and difficulty focusing on important tasks. They may also contribute to more serious health conditions, such as depression. The overuse of technology may have a more significant impact on developing children and teenagers.

Substitute in production

Substitutes-in-production are two or more goods that can be produced using the same resources. Producing one good prevents sellers from using resources to produce another. Produce one or produce the other, but not both. ... An increase in the price of one substitute good causes a decrease in the supply of the other.

Price ceiling_ price ceiling is a legal maximum price that one pays for some good or service. A government imposes price ceilings in order to keep the price of some necessary good or service affordable. For example, in 2005 during Hurricane Katrina, the price of bottled water increased above $5 per gallon.

Producer surplus

Producer surplus is the total amount that a producer benefits from producing and selling a quantity of a good at the market price. The total revenue that a producer receives from selling their goods minus the total cost of production equals the producer surplus.

Efficient Market

Market efficiency refers to the degree to which market prices reflect all available, relevant information. If markets are efficient, then all information is already incorporated into prices, and so there is no way to "beat" the market because there are no undervalued or overvalued securities available.