Unit 1 Keywords 4.0 / 5 based on 2 ratings ? EconomicsASEdexcel Created by: Shannon SavageCreated on: 07-05-13 10:48 Scarce Resources Resources that are limited and finite 1 of 14 Normative Statement A statement that is based on a value judgement 2 of 14 Positive Statement A statement that can be tested 3 of 14 Complimentary Goods Goods that are often consumer together 4 of 14 Market Failure When resources are inefficiently allocated due to imperfections in the price mechanism 5 of 14 Private Costs Costs imposed directly by the individual producer or consumer from economic activity 6 of 14 Private Benefits Benefits enjoyed by the producer or consumer of economic activity 7 of 14 Social Costs The total cost to society of an economic transaction 8 of 14 Merit Goods A good that produces positive externalities 9 of 14 Demerit Goods A good that produces negative externalities 10 of 14 Government Failure When governments intervene which leads to a net welfare loss 11 of 14 Information Failure When some or all participants of an economic activity don't have perfect knowledge 12 of 14 Buffer Stock Schemes Schemes where organisations buys and sells in the open market to maintain a minimum price for a product 13 of 14 Production Possibility Frontier Shows the maximum output of two goods when all resources are used fully and effieciently 14 of 14
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