Micro Economics (General)

Question	Answer
adverse selection	a situation in which a person at risk is more likely to take out insurance
allocative efficiency	achieved when society is producing an appropriate bundle if goods relative to consumer preferences
Cartel	an agreement between firms in a market on price and output with the intention of maximising their joint profits
ceteris paribus	a latin phrase meaning 'other things being equal' when looking at one variable with otjer influences equal
command economy	an economy where decisions on resource allocation are made by the state
comparative static analysis	effect on equlibrium of a change in the external conditions affecting a market

Resource summary

	Created by Fyu Vb over 8 years ago