Economics, 3rd Edition

market for loanable funds 

the market in which those who 

want to save supply funds and those who want to borrow to 

invest demand funds

market-orientated supply-side policies 

policies designed 

to free up markets to improve resource allocation through more 

effective price signals

market power 

the ability of a single economic agent (or small 

group of agents) to have a substantial influence on market 

prices

market segments 

the breaking down of customers into groups 

with similar buying habits or characteristics

market share 

the proportion of total sales in a market 

accounted for by a particular firm

maximin criterion 

the claim that the government should aim to 

maximize the well-being of the worst-off person in society

medium of exchange 

an item that buyers give to sellers 

when they want to purchase goods and services

menu costs 

the costs of changing prices

merit goods 

goods which can be provided by the market but 

may be under-consumed as a result

microeconomics 

the study of how households and firms make 

decisions and how they interact in markets

minimum wage 

the lowest price an employer may legally pay 

to a worker