Economics unit 1

Questão	Responda
capital	man-made aids to production
opportunity cost	the cost of the next best alternative which is forgone when a choice is made
economic problem	how to allocate scarce resources among alternative uses
price elasticity of demand	measures the responsiveness of quantity demanded to a change in price
price elasticity of supply	measures the responsiveness of quantity supplied to a change in price
price elasticity of income	measures the responsiveness of quantity demand to a change in income
cross elasticity of demand	measures the responsiveness of quantity demanded of one product to a change in price of another product
allocative efficiency	when consumer satisfaction is maximised
negative externalities	when the social costs of an activity exceed the private costs
positive externalities	where the social benefits of an activity exceed the private benefits
merit goods	where the consumption of a product is more beneficial to consumers than they realise
demerit goods	where the consumption of a good is more harmful to the consumer than they actually realise
ceteris paribus	assumes that other variables stay the same
demand	the quantity of a product that consumers are willing and able to purchase at various prices over a period of time
economic efficiency	where both allocative and productive efficiency are achieved
consumer surplus	the extra amount that a consumer is willing to pay above the price is actually paid for a product
producer surplus	the difference between the price a producer is willing to accept for a product and what is actually paid
equilibrium price	the price where demand and supply are equal
external benefits	the benefits that accrue as a consequence of externalities to third parties
external costs	the costs that are the consequences of externalities to third parties
externality	an effect whereby those not directly involved in taking a decision are affected by the actions of others
factor of production	the resource inputs that are available in an economy for the production of goods and services ie. land, labour, capital and enterprise
market	an arrangement that brings buyers and sellers into contact
market failure	where the free market mechanism fails to achieve economic efficiency
inferior goods	goods for which an increase in income leads to a fall in demand
information failure	a lack of information resulting in consumers and producers making decisions that do not maximise welfare
non-excludability	situation existing where individual consumers cannot be excluded from consumption
non-rivalry	situation existing where consumption by one person does not affect the consumption of all others
normal goods	goods for which an increase in income leads to an increase in demand
production possibility curve	this show the maximum quantities of different combinations of output of two products, given current resources and state of technology
public goods	goods that are collectively consumed and have the characteristics of non-excludability and non-rivalry
productivity	output, or production, of a good or service per worker
scarcity	a situation where there are insufficient resources to meet all wants
specialisation	the concentration by a worker or workers, firm, region, or whole economy on a narrow range of goods and services
subsidy	a payment, usually from government, to encourage production or consumption of a product
substitute	a competing good
supply	the quantity of a product that producers are willing and able to provide at different market prices over a period of time
surplus	an excess of supply over demand
tradable permit	a permit that allows the owner to emit a certain amount of pollution and that, if unused or only partially used, can be sold to another polluter
division of labour	where the specalisation of labour where the production process is broken down into separate tasks
micro economics	the study of how households and firms make decisions in markets
factors affecting demand	consumer tastes and preferences income available to consumer prices of substitute/complementary goods interest rates advertising consumer confidence
indirect tax	tax levied on goods and services
regulation	a level/limit of quantity supplied of a product. Law enforced ie health and safety regulation
equilibrium quantity	the quantity that is demanded and supplied at the equilbrium price

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	Criado por paige lole mais de 10 anos atrás