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Karteikarten

Definitions

Sophie Marshall Economics A Levels Englisch 89 Karten

Karten in diesem Stapel (89)

  1. 1ProfitWhen total income or revenue for a firm is greater than total costs
  2. 2Opportunity costThe next best alternative foregone when an economic decision is made
  3. 3Economic goodsGoods that are scarce and therefore have an opportunity cost
  4. 4Free goodsGoods that have no opportunity cost, for example air
  5. 5Factor marketThe market for the factors of production that make others goods and services such as labour or raw materials
  6. 6Renewable resourcesResources that are able to be replenished over time, whereas non-renewables such as oil and gas are likely to run out
  7. 7Free market economyOne in which there is very limited government involvement in providing goods and services. Main role is to ensure the rules are fair
  8. 8PPBIndicates the maximum possible output that can be achieved given a fixed set of resources and technology in a particular time period
  9. 9Productive efficiencyWhen a firm operates at a minimum average total cost, producing the maximum possible output from inputs into the production process
  10. 10Allocative efficiencyWhen it is not possible to produce more of one good without making less of another
  11. 11ProductivityA measure of efficiency, measuring the ratio of inputs to outputs; the most common measure is labour productivity, which is the output per worker
  12. 12Human capitalThe skills, abilities, motivation and knowledge of labour. Improvements in human capital can raise productivity and can shift the PPB to the right
  13. 13Division of labourBreaking the production process down into a sequence of tasks, with workers assigned to particular tasks
  14. 14SpecialisationThe production of a limited range of goods by an individual factor of production or firm or country, in cooperation with others so that together a complete range of goods is produced
  15. 15Value judgementsStatements or opinions expressed that are not testable or cannot be verified and depend very much on the views of the individual and the values they hold
  16. 16Normative statementsOpinions that require value judgements to be made
  17. 17Positive statementsStatements that can be tested against real world data
  18. 18DemandThe amount that consumers are willing and able to buy at each given price level
  19. 19Effective demandDemand supported by the ability to pay for a good or service
  20. 20Market demandTotal demand in a market for a good, the sum of all individuals' demand, at each given price level
  21. 21Contractions in demandFalls in the quantity demanded caused by rises in prices
  22. 22Extensions in demandIncreases in demand caused by changes (falls) in price
  23. 23Normal goodsGoods or services that will see an increase in demand when income rises
  24. 24Inferior goodsGoods or services that will see demand fall when income rises
  25. 25Complementary productsGoods that are consumed together, for example bread and butter, or DVDs and DVD players
  26. 26Composite demandA good that is demanded for more than one purpose so that an increase in demand for one purpose reduces the available supply for the other, typically leading to higher prices, e.g. milk used in butter and cheese
  27. 27SupplyThe amount offered for sale at each given price level
  28. 28Planned supplyThe amount producers plan to produce at each given price
  29. 29Actual supplyThe amount that producers in fact produce. This may differ from planned supply for a variety of reasons such as breakdowns in production, staff absences, etc.
  30. 30Market supplyThe sum of all individual firm's supply curves at each given price
  31. 31Extension in supplyWhen there is an increase in supply because the market price has risen
  32. 32Contraction in supplyWhen the amount offered for sale is reduced because the price level has fallen
  33. 33Joint supplyWhen the production of one good also results in the production of the other
  34. 34EquilibriumThe price at which demand is equal to supply and there is no tendency for change
  35. 35DisequilibriumA situation within the market where supply does not equal demand
  36. 36Excess supplyWhen supply at a particular price is greater than demand; this should signal to producers to lower prices
  37. 37Market-clearing priceThe price at which all goods that are supplied will be demanded
  38. 38Excess demandWhen demand is greater than supply at a given price
  39. 39Maximum priceA price ceiling above which the price of a good or service is not allowed to increase
  40. 40Minimum priceA price floor below which the price of a good or service is not allowed to decrease
  41. 41Price elasticity of demandThe responsiveness of demand to a change in the price level. The formula is % Δ Qd/% Δ price
  42. 42SubsidiesPayments by government to producers to encourage production of goods or services
  43. 43Incidence of taxThe proportion of tax that is passed onto the consumer (when demand is price inelastic incidence tax tends to be high)
  44. 44Price elasticity of supplyThe responsiveness of supply to a change in the price level. The formula is % Δ Qs/% Δ price
  45. 45Income elasticity of demandThe proportion to which demand changes when there is a change in income
  46. 46Normal goodsGoods or services that will see an increase in demand when incomes rise
  47. 47Inferior goodsGoods or services that will see demand fall when income rises
  48. 48SubstitutesGoods that can be used as alternatives to another good, for example bus and rail services or Mars Bars and Snickers
  49. 49CommodityA good that is traded, but usually refers to raw materials or semi-manufactured goods. Often they are homogeneous goods
  50. 50Investment goodA product that will increase in value over time
  51. 51SustainableAn activity carried out today that does not stop future generations maximising their welfare
  52. 52Market failureWhere the market fails to produce what consumers require at the lowest possible cost
  53. 53Government failureWhen government intervention to correct market failure does not improve the allocation of resources or leads to a worsening of the situation. The costs of government intervention may exceed the benefits
  54. 54Buffer stocksAn intervention system that aims to limit the fluctuations of the price of a commodity
  55. 55Inflationary pressureOccurrences that are likely to lead to increased prices
  56. 56Negative externalitiesCosts imposed on a third party not involved with the consumption or production of the good
  57. 57ProductionThe process that converts factor inputs into outputs of goods and services
  58. 58Fixed costsCosts of production that do not vary as output changes
  59. 59Variable costsCosts of production that vary with output
  60. 60Economies of scaleWhere an increase in the scale of production leads to reductions in average total costs for firms
  61. 61Diseconomies of scaleWhere an increase in the scale of production leads to increases in average total costs for firms
  62. 62CompetitionA market situation in which there are a large number of buyers and sellers
  63. 63ExternalitiesCosts or benefits that spill over to third parties external to a market transaction
  64. 64Marginal private costThe cost to an individual or firm of an economic transaction
  65. 65Marginal external costThe spillover cost to third parties of an economic transaction
  66. 66Marginal social costThe full cost to society of an economic transaction, including private and external costs
  67. 67Marginal private benefitThe benefit to an individual or firm of an economic transaction
  68. 68Marginal external benefitThe spillover benefit to third parties of an economic transaction
  69. 69Positive externalityA positive spillover effect to third parties of a market transaction
  70. 70Marginal social benefitThe full benefit to society of an economic transaction, including private and external benefits
  71. 71Ex anteA term that refers to future events
  72. 72Ex postA term that refers to after the event
  73. 73Merit goodA good that would be under-consumed in a free market, as individuals do not fully perceive the benefits obtained from consumption
  74. 74Failure of informationWhere economic agents do not properly perceive the benefits or disadvantages of a transaction
  75. 75Partial market failureWhere the free market provides a product but with a misallocation of resources
  76. 76Demerit goodA good that would be over-consumed in a free market, as it brings less overall benefit to consumers than they realise
  77. 77Public goodA good that possesses the characteristics of non-excludability and non-rivalry in consumption
  78. 78Free-rider problemWhere some consumers benefit from other consumers purchasing a good, particularly in the case of public goods
  79. 79Quasi-public goodA good that has some of the qualities of a public good but does not fully possess the two required characteristics of non-rivalry and non-excludability
  80. 80Private goodA good that is both excludable and rival in consumption
  81. 81Complete market failureWhere the free market fails to provide a product at all, i.e. the case of public goods
  82. 82Occupational immobilityAs patterns of demand and employment change, many workers may find it difficult to easily secure new jobs, since they may lack the necessary skills
  83. 83Geographical immobilityWhere workers find it difficult to move to where employment opportunities may be, due to family ties and differences in housing costs
  84. 84IncomeA flow of earnings to a factor of production over a period of time, e.g. wages or salaries
  85. 85WealthA stock of owned assets, e.g. housing property or a portfolio of shares
  86. 86Indirect taxA tax on spending
  87. 87Pollution permitA permit sold to firms by the government, allowing them to pollute up to a certain limit
  88. 88Law of unintended consequencesWhen the actions of consumers, producers and governments have effects that are unanticipated
  89. 89InflationA persistent increase in the level of prices

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Beschreibung
A Levels Economics (Microeconomics) Karteikarten am Definitions, erstellt von Sophie Marshall am 24/03/2014.
Erstellt von
Sophie Marshall
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