23315961
Description
Flashcards by Sophia Lynch, updated more than 1 year ago
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Created by Sophia Lynch
over 4 years ago
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| Question | Answer |
| What market structures lead to DWL's? | Oligopoly and Monopoly |
| What is the point of the Commerce Act 1986? (2) | 1. To promote competition in NZ market 2. Prohibits misleading and deceptive conduct by traders |
| What 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 |
| What industries are regulated? (5) | 1. Electricity 2. Gas 3. Telecommunications 4. Airports 5. Dairy industry |
| Name the four main components of the circular flow diagram. | |
| In 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 |
| What is Gross Domestic Product (GDP)? | The market value of all final goods and services produced within a country in a given time period. |
| What is excluded from GDP? | Transactions that occurred without an exchange of money. For example babysitting as a favour for a friend. |
| What 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 |
| Why 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. |
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