Alvins' sicker definitions Flashcards
Aggregate demand (AD)
The total demand for a countries goods and services at a given price in a given time period
Aggregate supply (AS)
The total amount that producers in an economy are willing and are able to supply at a given price level in a given time period
Allocative efficiency
Where consumer satisfaction is maximised
Arithmetic mean
The sum of the items divided by the number of the items
Asymmetric information
Information that is not shared equally between two parties
Automatic stabilisers
Forms of government spending and taxation that change automatically to offset fluctuations in economic activity
Average propensity to consume (APC)
The proportion of disposable income spent. It is calculated by consumer expenditure divided by disposable income
Average propensity to save
The proportion of disposable income saved. Calculated by dividing savings by disposable income
Balance of payments
A record of all transactions between one country and the rest of the world
Capital utilisation
The extent to which firms are using their capital goods
Capital
Man made aids to production
Ceteris paribus (other things being equal)
Assumption that other variables will remain unchanged
Choice
The selection of appropriate alternatives
Claimant count
A measure of unemployment that includes those that are receiving unemployment related benefits
Command economy
An economic system in which resources are state owned and are also allocated centrally
Complements
Goods for which there is joint demand
Consumer confidence
How optimistic consumers are about future economic prospects
Consumer price index
A measure of changes in the price of a representative basket of consumer goods and services
Differs from retail price index in methodology and coverage
Cost push inflation
Increase in price level caused by increases in the cost of production
Cross elasticity on demand (XED)
The responsiveness of demand for one product in relation to a change in the price of another product
Cyclical unemployment
Unemployment arising from a lack of aggregate demand
Demand pull inflation
Increase in price level due to the increase in aggregate demand
Demand schedule
The data that is used to draw the demand curve of a product
Demerit goods
Their consumption is more harmful that is actually realised