Economics keywords

?
  • Created by: Charlotte
  • Created on: 04-01-13 17:24
Economics
allocation of scarce resources to provide for unlimited human wants.
1 of 70
Scarcity
insufficient resources to provide for everyone's wants
2 of 70
Opportunity cost
value of the next best alternative forgone
3 of 70
resources
factors of production. CELL
4 of 70
Renewable
stock level can be maintained over a period of time
5 of 70
Non-renewable
stock level is decreased over time as it is consumed
6 of 70
PPF
Production possibility frontier. Maximum potential output for two goods or services than an economy can achieve when all it's resources are fully and efficiently employed.
7 of 70
specialisation
concentrate on the production of a limited range of goods and services.
8 of 70
division of labour
form of specialisation. Individuals concentrate on the production of a particular good or service.
9 of 70
centrally planned economy
resources are allocated by the government. no price mechanism.
10 of 70
mixed economy
some resources are allocated by the government and some by the price mechanism
11 of 70
free-market economy
all resources are allocated by the price mechanism. no government intervention
12 of 70
positive economics
facts and value free scientific approach. Can be tested true or false by referring to the facts.
13 of 70
normative economics
value-judgement. which cannot be proved either true or false. use value laden words like 'should' 'ought'
14 of 70
markets
where buyers and sellers exchange goods or services. a price is agreed.
15 of 70
product market
refers to goods or services, which the consumer derives utility from.
16 of 70
commodity market
raw materials or minerals. used in the production of goods and services.
17 of 70
labour market
buying and selling of labour time for the production of goods and services.
18 of 70
demand
quantity of a good or serivce purchased at a given price over a given period of time.
19 of 70
effective demand
demand backed up by the ability to pay.
20 of 70
demand curve
quantity of a good or service that would be bought over a range of different price levels in a given period of time
21 of 70
PED
responsiveness of demand for a good due to a change in its price
22 of 70
Total revenue
total payments a firm receives from selling a given quantity of goods or services
23 of 70
income elasticity of demand YED
responsiveness of demand for a good or service due to a change in real income
24 of 70
real income
spending power of money
25 of 70
cross elasticity of demand
responsiveness of demand for a good b to a change in price of good a
26 of 70
substitute goods
competitive demand
27 of 70
complementary goods
joint demand
28 of 70
supply
quantity of a good or service that firms are willing to sell at a given price and over a given period of time
29 of 70
supply curve
quantity of a good or service that firms are willing to sell to a market over a range of prices in a given period of time
30 of 70
market supply curve
horizontal summation of individual firms supply curves for a particular good or service.
31 of 70
PES
responsiveness of supply to a change in price
32 of 70
equilibrium in a market
balance in a market where the demand and supply curves intersect
33 of 70
consumer surplus
extra amount of money consumers are prepared to pay for a good or service above what they actually pay
34 of 70
producer surplus
extra amount of money paid to producers above what they are willing to accept to supply a good or service
35 of 70
tax
compulosry charge by the government on goods, services, incomes or capital. used to raise funds
36 of 70
direct tax
levied on an individual or organisation.
37 of 70
indirect tax
levied on the purchase of goods and services
38 of 70
specific tax
fixed amount per unit of a good
39 of 70
ad valorem tax (VAT)
charged as a % of the price of a good
40 of 70
subsidies
grant to encourage suppliers to increase production of a good or service leading to a fall in its price.
41 of 70
price elastic
market price falls by a relatively small amount
42 of 70
price inelastic
market price falls by a relatively large amount
43 of 70
wage determination
determined by the interaction of demand and supply
44 of 70
derived demand
derived from the demand for the goods and services it makes
45 of 70
the supply of labour
quantity and quality of labour hours offered for work over a given time period.
46 of 70
The national minimum wage
legal minimum hourly rate of pay an employer can pay its workers
47 of 70
market failure
price mechanism causes an inefficient allocation of resources
48 of 70
externalities
costs or benefits which are external to an exchange. 3rd party effect ignored by the price mechanism
49 of 70
private costs
producers-cost of production
50 of 70
social costs
private costs+external costs= social costs
51 of 70
external benefits
may occur in the production and consumption of a good or service
52 of 70
private benefits
benefits the firm receives
53 of 70
social benefits
difference between PB and SB
54 of 70
the social optimum equilibrium
the social cost of producing the last unit of output= the social benefit of consuming it
55 of 70
public goods
not produced by the markets. non excludability and non rivalry
56 of 70
non-excludability
once a product has been produced for the benefit of 1, impossible to stop others from benefiting.
57 of 70
non-rivalry
more people consume a good and enjoy it's benefits it does not reduce the amount available for others.
58 of 70
private good
has rivalry and excludability
59 of 70
symmetric information
where consumers and producers have perfect and equal market information. will lead to an efficient allocation of resources.
60 of 70
asymmetric information
in reality, imperfect and unequal market knowledge. could lead to a mis allocation of resources
61 of 70
mobility of labour
ability of workers to change from one job to another both geographically and occupationally.
62 of 70
frictional unemployment
while people search for jobs and keep them
63 of 70
structural unemployment
mis match of skills and location between job seekers and providers
64 of 70
geographical immobility
obstacles which prevent labour moving from one area to the other
65 of 70
occupational immobility
obstacles which prevent labour from changing their type of occupation
66 of 70
commodities
raw materials used in the production of goods
67 of 70
subsidies
grant provided by the government to encourage the production and consumption of a particular good or service
68 of 70
buffer stock schemes
reduce price fluctuations of a commodity and stabilise producer incomes
69 of 70
minimum pricing
may stabilise commodity price and producers incomes through a guaranteed minimum price scheme
70 of 70

Other cards in this set

Card 2

Front

insufficient resources to provide for everyone's wants

Back

Scarcity

Card 3

Front

value of the next best alternative forgone

Back

Preview of the back of card 3

Card 4

Front

factors of production. CELL

Back

Preview of the back of card 4

Card 5

Front

stock level can be maintained over a period of time

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »