is a system when the government determines what goods should be produced
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What is a free market economy
an idealised market when prices for goods and services are determined by the open market and consumers
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What is a market
Where you can buy and trade
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what is micro economics
a branch of economics that studies the behavior of individuals and firms
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What is macro economics
the branch of economics concerned with large scale or general economic factors, like interest rates
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What does the retail price index measure
a measure of inflation, published by the office for national statistics
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Why do demand curves shift
when the price falls and quantity of a commodity rises and vice versa
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Elasticity is
when the price of goods go up and demand goes down
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what is perfect competition
buyers and sellers are well informed that all elements of monoploy are absent and the market price of commodity is beyond the control of individual buyers and sellers
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public goods are
provided to all members of society by the government, such as parks and roads
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a merit good is
a commodity or a service, such as education, that is regarded by society or government as deserving public finance
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externality is
a consequence of an industrial or commercial activity, which affects others parties without this being reflected in market prices
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aggregate demand
is consumption plus investments, plus government spending, plus exports and imports
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fiscal policy is
is the use of government revenue collection and expenditure to influence the economy
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business cycle stages are
series or cycle of economy expansion and contraction
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Other cards in this set
Card 2
Front
What is a free market economy
Back
an idealised market when prices for goods and services are determined by the open market and consumers
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