econ 13~15

Question 1

Public sector

Answer 1

part of economy controlled by the government

Question 2

State owned enterprise

Answer 2

organization owned by the government which sells products

Question 3

Privatization

Answer 3

sale of public sector assets to the private sector

Question 4

Price mechanisim

Answer 4

market forces such as demand & supply that determines prices

Question 5

Market failure

Answer 5

market forces resulting in an inefficient allocation of resources

Question 6

Free rider

Answer 6

someone who consumes a good or services with out paying

Question 7

Allocative efficiency

Answer 7

resources are allocated to produce right products with right quantities

Question 8

Productivity efficient

Answer 8

products produced in lowest possible price using full amount of resources

Question 9

Dynamic efficiency

Answer 9

efficiency occurring over time investments and innovation

Question 10

third parties

Answer 10

not directly involved producing or consuming a product

Question 11

social benifits

Answer 11

the total benefits to society of an economic activity

Question 12

social cost

Answer 12

total social cost of an economic activity

Question 13

private benefits

Answer 13

benefits received by consuming or producing directly

Question 14

private costs

Answer 14

costs carried by the directly, consuming or producing a product

Question 15

external costs

Answer 15

costs imposed to the third party from a consumption or producing activity

Question 16

external benefits

Answer 16

benefits that are applied to the ones who are not involved

Question 17

social optimum output

Answer 17

level of out put where social cost and benefits equal, and welfare is mximised

Question 18

merit goods

Answer 18

under consumed products that benefit more than the consumers thoughts. it provides positive externalities, and social benefits

Question 19

demerit goods

Answer 19

goods that are over consumed not knowing the harmfulness of the product. can cause negative externanlities

Question 20

public goods

Answer 20

products that are non exclude able from one taking benifit

Question 21

private goods

Answer 21

products that are exclude able from one taking it

Question 22

monopoly

Answer 22

a single seller that controls the market

Question 23

price fixing

Answer 23

two or more firms agree to sell a product at the same price

Question 24

mixed economic system

Answer 24

where they’re private and public sector playing an important role in he economy

Question 25

rationing

Answer 25

the limit on that can be consumed

Question 26

lottery

Answer 26

drawing of tickets to decide who takes the products

Question 27

nationalisation

Answer 27

ownership of industry changes in to governmental

Question 28

public corporation

Answer 28

governmental firm designed to act in the public interest

Question 29

multinational companies

Answer 29

firms where produce in other different countries