Econ 1 Terms 0.0 / 5 ? EconomicsAll in Econ 1ASAQA Created by: Haden CornishCreated on: 11-04-14 12:55 Opportunity Cost The next best alternative forgone when an economic decision is made 1 of 41 Economic Goods Goods that are scarce and therefore have an opportunity cost 2 of 41 Free Goods Goods that have no opportunity cost (e.g air) 3 of 41 Free Market Economy One in which there is very limited government involvement in providing goods and services. Its main role is to ensure fair rules 4 of 41 PPB Max. possible output with fixed resources and time period 5 of 41 Allocative Efficiency When not possible to make someone better off without making someone worse off 6 of 41 Productive Efficiency When a firm operates at min. ATC's 7 of 41 Productivity Measures ratio of inputs to outputs 8 of 41 Specialisation Production of a limited range of goods by a firm 9 of 41 Division of Labour Breaking the production process down into sequence of tasks 10 of 41 Value Judgements Statements or opinions expressed that are not testable 11 of 41 Positive Statement Statements that can be tested 12 of 41 Normative Statement Opinions that require a Value Judgement to be made 13 of 41 Demand Amount Consumers are willing and able to buy at a given price level 14 of 41 Effective Demand Demand supported by the ability to pay for a good or service 15 of 41 Market Demand Total demand in a market for a good 16 of 41 Contractions in Demand Falls in Qd and Rise in P 17 of 41 Extensions in Demand Falls in P and Rise in Qd 18 of 41 Normal Goods Goods or services that will see an increase in demand when income rises 19 of 41 Inferior Goods Will see a fall when income rises 20 of 41 Complementary Products Goods consumed together 21 of 41 Composite Demand Good demanded for more than one purpose 22 of 41 Derived Demand Demand for one good comes from another (cars stimulate steel) 23 of 41 Supply Amount offered for sale at each given price level 24 of 41 Planned Supply / Actual Amount producers plan to produce / amount produced 25 of 41 Market Supply Sum of all individual firm's supply curves at each given price 26 of 41 Contraction in Supply When amount offered for sale is reduced as P down 27 of 41 Extension in Supply When amount offered for sale is up as P up 28 of 41 Joint Supply When production of one good results in another 29 of 41 Price Elasticity Responsiveness of demand to a change in price level 30 of 41 Income Elasticity of Demand The proportion to which D changes when Income does 31 of 41 Commodity Traded good (tea etc.) 32 of 41 Market Failure Where market fails to produce what consumers require at lowest possible cost 33 of 41 Government Failure When government intervention to correct market failure doesn't improve allocation of resources 34 of 41 Buffer Stock Intervention system that aims to limit the fluctuations of price of commodity 35 of 41 Externalities Costs or benefits that spill over onto the 3rd party (consumption or production) 36 of 41 Merit Good Under consumed in free market. Benefits misunderstood 37 of 41 Public Good Non-excludable and non-rivalry 38 of 41 Quasi-Public Good Has some rivalry and excludability (national park entrance fee) 39 of 41 Private Good Excludable and rivalry 40 of 41 Income/Wealth Flow of earnings/stock of owned assets 41 of 41
Comments
No comments have yet been made