Flashcards
Competition Policy, GDP & Macro-introduction
Cards in this deck (10)
- 1What market structures lead to DWL's?Oligopoly and Monopoly
- 2What is the point of the Commerce Act 1986? (2)1. To promote competition in NZ market
2. Prohibits misleading and deceptive conduct by traders - 3What are the tool of the Competition Authority? (4)1. Do nothing
2. Encourage competitive practices
3. Regulate the behaviour of private suppliers
4. Nationalise suppliers - 4What industries are regulated? (5)1. Electricity
2. Gas
3. Telecommunications
4. Airports
5. Dairy industry - 5Name the four main components of the circular flow diagram.
- 6In the circular flow diagram, which arrows are for what?1. Outer arrows for flow of dollars ($)
2. Inner arrows for flow of inputs and outputs - 7What is Gross Domestic Product (GDP)?The market value of all final goods and services produced within a country in a given time period.
- 8What is excluded from GDP?Transactions that occurred without an exchange of money.
For example babysitting as a favour for a friend. - 9What is included in GDP? (3)1. Goods produced and sold in the economy LEGALLY
2. Only the VALUE of the final goods produced
3. Only goods that are CURRENTLY produced
4. In a given TIME PERIOD
5. Within a COUNTRY - 10Why would the steel sold to 'Fisher & Paykel' to produce a dishwasher NOT be included in GDP?Because the steel is considered an intermediate good. Once it is used to produce the dishwasher, a final good has been produced. This means that steel won't be recorded twice under GDP.