Economics Unit 1 0.0 / 5 ? EconomicsResource allocationASCIE Created by: Maliha OmarCreated on: 23-07-18 16:24 Human capital The value of a worker(increases with education+training) 1 of 16 Capital 1. Working 2. Fixed 2 of 16 What does the ppc show? 1. scarcity 2.choice 3. Opportunity cost 4. Growth 5. Unemployment/recession 6. Productive efficiency 7.specialisation 8. comparative adv. 3 of 16 Two types of efficiency are? 1. Productive efficiency- prod. at lowest cost 2. allocative efficiency- maximised social welfare 4 of 16 Define short run, long run, very long run? explain variableness 5 of 16 Positive statement One that is based on empirical or actual evidence.(will) 6 of 16 Normative statement subjective about what should happen. 7 of 16 Ceteris paribus "other things remain equal"- simplifying circumstances. 8 of 16 Margin one small change creates another change in the economy 9 of 16 Market mechanism Market economy(basis of price is influenced by demand and supply) 10 of 16 Planned economy characteristics *sacrificing current consumption and standard of living for future generation betterment. 11 of 16 Money characteristics 1. durability 2. portability 3. divisibility 4. uniformity 5.scarcity 12 of 16 private goods characteristics excludability and rivalry(consumption by one reduces it for another) 13 of 16 paternalism when society has the right to make judgements because "they know best." 14 of 16 Moral hazard someone in the market knows better than the other. (doctor) 15 of 16 Adverse Selection someone who withholds information they know (doctor not telling everything about procedures and what has happened) 16 of 16
Comments
No comments have yet been made