AQA Economics Unit 1 Definitions

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  • Created by: Joe
  • Created on: 01-05-14 15:21
Production Possibility Frontier
Curve showing the maximum potential level of output of one good in an economy, given the level of output for all other goods in the economy
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Basic Economic Problem
Wants are infinite but resources are scarce
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Barriers to Entry
Factors which make it difficult or impossible for firms to enter an industry
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Government Failure
Occurs when government intervention leads to a net welfare loss compared to the free market solution. Will occur when the cost of government intervention exceeds the benefit
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Externality
Spillover costs or benefits to third parties
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Public Good
A good that would not be provided by the market mechanism as it is non rival and non excludable
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Free Rider
A person who receives benefits that others have paid for without making any contribution themselves
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Other cards in this set

Card 2

Front

Wants are infinite but resources are scarce

Back

Basic Economic Problem

Card 3

Front

Factors which make it difficult or impossible for firms to enter an industry

Back

Preview of the back of card 3

Card 4

Front

Occurs when government intervention leads to a net welfare loss compared to the free market solution. Will occur when the cost of government intervention exceeds the benefit

Back

Preview of the back of card 4

Card 5

Front

Spillover costs or benefits to third parties

Back

Preview of the back of card 5
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