OCR AS Micro economics key terms definitions

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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

Preview of the front of card 3

Card 4

Front

Maximum combination of two goods

Back

Preview of the front of card 4

Card 5

Front

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

Back

Preview of the front of card 5
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