From AQA textbook all definitions from chapter 8 for economics

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DEFINITIONS (CHAPTER 8)
TERM DEFINITION TERM DEFINITION
Externalities Costs or benefits that spill over to third parties external to a Merit good A good that would be underconsumed in a free market, as
market transaction individuals do not fully perceive the benefits obtained from
consumption
Marginal Private The cost to an individual or firm of an economic transaction Failure of information where economic agents do not properly perceive the benefits
Costs (or information or disadvantages of a transaction
failure)
Marginal The spill over cost to third parties of an economic transaction Partial market failure where the free market provides a product but with
External Costs misallocation of resources
Marginal social The full cost to society of an economic transaction, Demerit good A good that would be overconsumed in a free market, as it
cost including private and external costs brings less overall benefit to consumers than they realise
Marginal private The benefit to an individual or firm of an economic Public good A good that posses the characteristics of nonexcludability and
benefit transaction nonrivalry in consumption
Marginal The spill over benefit to third parties of an economic Free rider problem Where some consumers benefit from other consumers
external benefit transaction purchasing a good, particularly in the case of public goods
Positive A positive spill over effect to third parties of a market Quasi public goods A good that has some of the qualities of a public good but does
externality transaction not fully posses the two required characteristics of nonrivalry
and nonexcludability
Marginal social The full benefit to society of an economic transaction, Private good A good that is both excludable and rival in consumption
benefit including private and external benefits
Ex ante A term that refers to future events Complete market where the free market fails to provide a product at all, i.e. the
failure case of public goods
Ex post A term that refers to after the event Occupational As patterns of demand and employment change, many
immobility workers may find it difficult to easily secure new jobs, since
they may lack the necessary skills

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Income a flow of earnings to a factor of production over a period of Geographical where workers find it difficult to move to where employment
time, e.g. wages or salaries immobility opportunities may be, due to family ties and difference in
housing costs
Wealth stock of owned assets, e.g.…read more

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