Given that Disposable Income = Consumption + Saving, if Cosumption > Disposeable income, what must be occuring?
Dissaving
1 of 12
Households and firms take do not take into account social costs. What is the equation for social costs?
Private cost + External cost
2 of 12
What is NOT a reason why a private firm may do a better job than a firm hired by the government/done by the government
Look at private costs
3 of 12
The characteristics of money are abbreviated by the acronym SHARPDD. What does the A stand for?
Acceptable
4 of 12
In which case would a bank's interest rate be likely to be higher?
When borrowing
5 of 12
If a lot of shares are bought in trading, the market can be described as what?
Bullish
6 of 12
Shares and _____ are sold on stock exchanges?
Government Bonds
7 of 12
If I owned a share, which equation would I use to determine whether or not I should sell it?
Yield
8 of 12
By placing a minimum wage, the Government creates a ______ of Labour
Surplus
9 of 12
Who will spend more ($)?
The rich
10 of 12
Who will save more ($)?
The rich
11 of 12
Influences on spending is determined by level of disposable income, wealth, confidence, distribution of income, advances in technology and interest rates. If interest rates increase, how will spending be affected?
Decreases
12 of 12
Other cards in this set
Card 2
Front
Households and firms take do not take into account social costs. What is the equation for social costs?
Back
Private cost + External cost
Card 3
Front
What is NOT a reason why a private firm may do a better job than a firm hired by the government/done by the government
Back
Card 4
Front
The characteristics of money are abbreviated by the acronym SHARPDD. What does the A stand for?
Back
Card 5
Front
In which case would a bank's interest rate be likely to be higher?
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