ALL REV EXTRA BREAD CRUMS tyyy sjhaijdia0wa Flashcards
Define underemployment.
Underemployment is when skilled labour is underutilised. In other words, when labour inputs are not used with maximum efficiency. As an example, hiring a lawyer to do cleaning is a substantial use of labour inputs.
can occur when not enough jobs, not enough hours to work, severe pay defecit
What’s the term enterprise inputs?
Enterprise inputs are the resources that manage land, labour and capital. They determine how the FOP are employed to optimize production. An example is a Mcdonalds manager organising shifts, and equipment maintainence to achieve their goals and mission.
What’s a mixed economy?
Mixed economies refer to economies that possess both capitalist and socialist perspectives. This could mean buyers and sellers communicate to determine production and there is an objective of ensuring some degree of equality. An example would be Australia in which the markets are regulated but prices and quantity are still greatly dependent on demand and supply.
What is technical efficiency?
Technical efficiency is about maximizing output with given resources (being on the PPC).
What is Allocative efficiency?
Allocative efficiency is about producing the right mix of goods that best satisfy consumer preferences.
What are subsidies?
A subsidy is a government payment or financial support provided to businesses or individuals to encourage certain economic activities.
Purpose: To reduce costs of production or consumption, often used to support industries or sectors in economic contraction or during economic downturns.
Example: Governments might provide subsidies to renewable energy companies to boost their growth during economic slowdowns or to reduce the cost of energy for consumers.
What are incentives?
Incentives are benefits or rewards designed to encourage people or businesses to take specific actions, like increasing investment or boosting production.
Purpose: To stimulate economic expansion and counter inflation, making people or companies want to spend and invest.
Example: Tax breaks for businesses that invest in technology or capital goods during periods of economic growth or inflation.
WHAT IS CETERIS PARIBUS
ASSUMING CETERIS PARIBUS
Whats aggregate supply?
What producers are willing and able to produce for sale at a given price level.
WHILE GDP IS The actual value of goods and services that were produced and sold in that period.
WHAT IS AAAG (AVERAGE ANNUAL ABSOLUTE GROWTH):
ENDING VALUE - STARTING VALUE / NUMBER OF YEARS
WHAT PERCENTAGE SHARE OF A TOTAL
(PART/TOTAL)*100
WHAT’S PERCENTAGE CHANGE
(NEW-OLD/OLD)*100
WHAT’S ABOSULTE DIFFERENCE?
B-A - FIND THE ACUTAL DIFFERENCE
WHAT IS TOURISTS SPENDING MONEY HERE CLASSIFIED AS?
INCREASE IN EXPORTS OF SERVICES
