Fichas
Key Definitions
Fichas del conjunto (36)
- 1Positive StatementAn assertion or a fact- it can be proved or disproved
- 2Normative StatementA value or a judgement which cannot be tested true or false
- 3Opportunity CostThe cost of any choice in terms of the next best alternative foregone
- 4Production Possibility FrontierThe different combinations of goods and services that can be produced with a given amount of resources
- 5DemandThe quantity that purchasers are willing and able to buy at a given price in a given period of time
- 6Derived DemandThe demand for a factor of production used to produce another good or service
- 7Composite DemandWhere goods have more than one use
- 8PEDHow responsive demand is to a change in price
- 9YEDHow responsive the demand for a product is to a change in real income
- 10Division of LabourThe breaking down of the production of a product into a number of separate tasks and allocating each worker to one task
- 11XEDThe responsiveness of demand for good X following a change in the price of a related good Y
- 12SupplyThe quantity of a good or service that a producer is willing and able to supply onto the market at a given price in a given period
- 13PESThe responsiveness of quantity supplied to a change in price
- 14Diminishing Marginal UtilityDescribes the situation where an individual gains less additional utility from consuming a product, the more of it is consumed
- 15Normal GoodOne where the quantity demanded increase in response to an increase in consumer incomes
- 16Inferior GoodOne where the quantity demanded decreases in response to an increase in consumer incomes
- 17Consumer SurplusA measure of the welfare that people gain from consuming goods and services
- 18Producer SurplusThe difference between the price producers are willing and able to supply a good or service for and the price they actually receive
- 19Indirect TaxesA tax levied on expenditure on goods or services
- 20SubsidiesA grant given by the government to producers to encourage production of a good or service
- 21Allocative EfficiencyAchieved when society is producing an appropriate bundle of goods relative to consumer preferences
- 22Asymmetric InformationA situation in which some participants in a market have better information about market conditions than others
- 23Ceteris ParibusOther beings equal
- 24Command EconomyAn economy in which decisions on resource allocation are guided by the state
- 25Competitive marketA market in which individual firms cannot influence the price of the good or service they are selling, because of competition from other firms
- 26ExternalitiesSpill-over effects from production and consumption for which no appropriate compensation is paid/received
- 27Market FailureWhen the price mechanism meads to an inefficient allocation of resources and a deadweight loss of economic welfare
- 28Marginal Social BenefitThe additional benefit that society gains from consuming an extra unit of a good
- 29Marginal Social CostThe cost to society of producing an extra unit of a good
- 30Market EconomyAn economy in which market forces are allowed to guide the allocation of resources
- 31Merit goodA good that brings unanticipated benefits to consumers, such that society believes it will be under consumed in a free market
- 32Mixed EconomyAn economy in which resources are allocated partly through price signals and partly on the basis of intervention of the state
- 33Public GoodsA good that is non-exclusive and non-rivalrous in consumption
- 34Quasi Public GoodA quasi public good is a near-public good. They are semi-non rival and semi-non exclusive
- 35Free Rider ProblemWhen an individual cannot be excluded from consuming a good, and thus has no incentive to pay for its provision
- 36Minimum PriceA price floor for a market- suppliers cannot sell the product legally at a lower price
Información
- Descripción
- AS - Level (Micro) Economics Fichas sobre Key Definitions, creado por Amy Blakeman el 16/03/2016.
- Creado por
- Amy Blakeman
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