Karteikarten
F581 - Markets In Action
Karten in diesem Stapel (63)
- 1EconomicsA science that studies how to allocate scarce resources, to satisfy societies unlimited needs and wants.
- 2MicroeconomicsSmaller scale allocation of scarce resources (personal = consumers and workers, firms = producers).
- 3HouseholdThe number of people who live in a house, and their economic activity.
- 4GoodsPhysical trade, tangible.
- 5ServicesInvisible trade, intangible.
- 6Economic problemLimited, scarce resources, but unlimited human needs and wants.
- 7ScarcityScarce resources, not enough for everyone.
- 8Factors of productionScarce resources, carrying an opportunity cost (Land, labour, capital and enterprise).
- 9Factor rewards/ Factor incomeOwners of factors of production are rewarded when they decide to trade their factors.
- 10LandAll natural resources (land, rivers, forests etc.) Reward for landlords is rent.
- 11LabourPhysical and intellectual input from workers. Reward for workers is wage.
- 12CapitalAll man-made tools and equipment (not money). Reward for creditors is interest.
- 13EnterpriseRisk taking factor, expertise and know-how. Reward for individuals is profit.
- 14EntrepreneurAn individual, who builds capital through general enterprise skills.
- 15WantNon essential items, personal need which is subject to change.
- 16Need/ basic needsNecessary/obligatory things and raw materials, needed for survival.
- 17Economy/ Economic systemA way to solve the economic problem.
- 18Free market economy (Capitalist system)Government has a limited role; resources are allocated without government interference. There is unrestricted ownership; freedom of choice and free enterprise.
- 19Command economy (centrally-planned economy)Government and bureaucracy decide what, how and for whom to produce. Planners make assumptions about what people want, and set targets and prices based on this.
- 20Mixed economyMix of free market and centrally planned economy. Tax is taken so the state can ensure a minimum standard of living for all.
- 21Opportunity costForegoing the benefit of the next best option.
- 22Production Possibility Curve (PPC)The limits or barrier of productive capacity. Also known as the production possibility frontier (PPF).
- 23Trade-offThe process of making a choice between alternatives.
- 24SpecialisationWhen scarce resources are focused upon providing a specific good/service.
- 25Division of labourBreaking down a manufacturing process into specific self-contained tasks, performed by individual workers. Results in significant increases in output; birth of mass production.
- 26ExchangeThe trade of two goods, of agreed equal value.
- 27ProductivityA measure of the efficiency of production.
- 28NationalisationThe transfer of private sector firms to state-ownership.
- 29PrivatisationThe transfer of state-owned industries to the private sector. Also known as denationalisation.
- 30MarketA place of transactions. The exchange of goods and services between producers and consumers, using money as a means of payment. Price is the main determinant.
- 31DemandThe quantity of goods or services consumers are willing to buy in a market at a given price, over a period of time.
- 32Notional demandThe aggregate quantity of goods and services that are demanded, when markets are in equilibrium.
- 33Effective demandThe intention to consume is converted into a purchase of goods or services.
- 34SupplyThe quantity of goods and services, producers or firms are willing to sell, at a given price.
- 35Determinant of demandThe factors that affect demand.
- 36Determinant of supplyThe factors that affect supply.
- 37Demand curveDemand in relation to price and quantity.
- 38Demand scheduleThe quantity demanded at every price.
- 39Supply curveSupply in relation to price and quantity.
- 40Supply scheduleThe quantity supplied at every price.
- 41Ceteris paribusLiterally translated ‘All other things being equal’. When all other factors that may affect demand are assumed constant.
- 42Equilibrium (market clearing)A situation where there is a state of balance, and so no tendency for change.
- 43Equilibrium priceThe price which leaves neither unsold products, nor unsatisfied demand. Demand is equal to supply.
- 44Equilibrium quantityThe quantity which leaves neither unsold products, nor unsatisfied demand. Demand = Supply.
- 45Glut (excess supply)Supply exceeds demand, at a given price. Supply > Demand.
- 46Shortage (excess demand)Demand exceeds supply, at a given price. Demand > Supply.
- 47Normal goodA product for which an increase in income, leads to an increase in demand for that item. (+ YED value)
- 48Inferior goodA product for which an increase in income, leads to a decrease in demand for that item. (- YED value)
- 49Substitute goodAlternative products that can be used to satisfy the same given want or need. (+ XED value)
- 50Complementary goodProducts that consumers use jointly together. (- XED value)
- 51Producer surplusThe difference between the market price, and the lowest price consumers are willing to pay.
- 52Consumer surplusThe difference between the market price, determined by supply and demand, and the highest price consumers are willing to pay for a good or service.
- 53SubsidyGovernment financial assistance to producers, to reduce costs of production. A non-price determinant of supply, resulting in increased supply.
- 54Indirect taxCompulsory changes imposed by the government on the sale of goods and services i.e. taxes on spending.
- 55Minimum priceAdopted when the government would like to help certain producers secure good profit levels, or consumer adequate income level.
- 56Maximum priceOccurs when the government intervenes in a market which is failing to fix the price of a product below the market price.
- 57Elasticity of demandMeasures the responsiveness of demand, following a percentage change in any determinant of demand.
- 58Elasticity of supplyMeasures the responsiveness of supply, following a percentage change in any determinant of supply.
- 59Cross Elasticity of Demand (XED)The responsiveness of demand of good A, following a percentage change in the price of good B. (+) or (–) value.
- 60Income Elasticity of Demand (YED)The responsiveness of demand, following a percentage change in income. (+) or (–) value.
- 61Price Elasticity of Demand (PED)The responsiveness of demand, following a percentage change in price. Always (–) value.
- 62ElasticA change of one variable results in a bigger change of the second.
- 63InelasticA change of one variable results in a smaller change of the second.
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- Beschreibung
- Economics (Micro-economics) Karteikarten am F581 - Markets In Action, erstellt von Azra Kucukkaramu am 20/04/2013.
- Erstellt von
- Azra Kucukkaramu
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- 233
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