OCR AS Micro economics key terms definitions

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Created by: James Ellis
Created on: 05-04-13 15:17

Scarce recourses and infinite wants

Economic problem

1 of 20

Land, Labour, Capital and Enterprise

Factors of production

2 of 20

The next best alternative forgone for the option chosen

Opportunity cost

3 of 20

Maximum combination of two goods

PPC

4 of 20

The amount of a commodity consumers are willing and able to buy at a given time and price

Demand

5 of 20

The difference between the price consumers are willing and able to pay and the price actually paid

Consumer Surplus

6 of 20

A measure of the responsiveness of demand to a change in price

PED

7 of 20

Measures the responsiveness of demand to a change in incomes

YED

8 of 20

Measures the responsiveness of demand to a change in the price of another product

XED

9 of 20

The amount of a commodity that producers are willing and able to supply at a given range of prices and in a given time period

Supply

10 of 20

The difference between the price producers are willing to sell at and the price actually sold at

Producer surplus

11 of 20

Measures the responsiveness of supply to a change in the market price

PES

12 of 20

When markets fail to deliver efficiency

Market failure

13 of 20

The positive spill over effects to a third party which arise when social benefits exceed private benefits

Positive externalities

14 of 20

The negative spill over effects to a third party which arise when social costs exceed private costs

Negative externalities

15 of 20

Goods not provided in a free market

Public goods

16 of 20

Goods that are excludable , have rivalry in consumption and rejectablity

Private goods

17 of 20

Goods under provided in a free market

Merit goods

18 of 20

Socially undesirable goods

Demerit goods

19 of 20

Putting a monetary value on an externality

Shadow pricing

20 of 20

Other cards in this set

Card 2

Front

Land, Labour, Capital and Enterprise

Back

Factors of production

Card 3

Front

The next best alternative forgone for the option chosen

Back

Card 4

Front

Maximum combination of two goods

Back

Card 5

Front

The amount of a commodity consumers are willing and able to buy at a given time and price

Back

View more cards

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OCR AS Micro economics key terms definitions