economics: how the market works keywords

keywords w/meaning

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  • Created by: tiaaaa123
  • Created on: 07-01-15 10:20
Productivity
OUTPUT PER WORKER PER PERIOD OF TIME
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oppurtunity cost
next best alternative/what we give up when we make a choice.
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Advantantage&disadvantage of free market
Advantage: firms are efficent,because of high competition/lots of innovation. Disadvantage: People act in their own self interest
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Advantage&Disadvantage of planned economy
Advantages: necessities are cheaper disadvantage: production is not put through demand/as profits go to the state workers may be less efficent
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Specialisation
When one individual ,region or country focuses on making one good/
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Division of labour
where the production of a good is broken into seperate tasks.
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benefits/drawbacks to the workers of specialisation
benefits: more motivation from job satisfaction/higher pay DRAWBCK: workers may become replaced w/machinery,skills might be wasted by doing one job
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Monopoly
a situation where there is only one firm/dominant firm in the market
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Extension of demand
Increase in demand due to the fall in price
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Contraction of demand
Fa;ll in demand due to the rise in price
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3 factors affecting demand
Climate,number of close substitues,taste/prefrences,fashion,advertising
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Other cards in this set

Card 2

Front

next best alternative/what we give up when we make a choice.

Back

oppurtunity cost

Card 3

Front

Advantage: firms are efficent,because of high competition/lots of innovation. Disadvantage: People act in their own self interest

Back

Preview of the back of card 3

Card 4

Front

Advantages: necessities are cheaper disadvantage: production is not put through demand/as profits go to the state workers may be less efficent

Back

Preview of the back of card 4

Card 5

Front

When one individual ,region or country focuses on making one good/

Back

Preview of the back of card 5
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