Another 15 Key terms

Question 1

Indirect tax

Answer 1

Imposed by the government on goods and services (eg: VAT)

Question 2

Information failure

Answer 2

Individuals or firms have a lack of information about economic decisions.

Question 3

Labour

Answer 3

Attempts to understand the pattern of wages, employment and income. The suppliers of labour are workers. The demanders of labour are employers.

Question 4

Labour productivity

Answer 4

Measures the amount of goods/services produced by one hour of labour. A measure of economic growth within a country (GDP)

Question 5

Market

Answer 5

Parties exchange in goods and services. Sellers offer products for buyers to purchase. Transactions.

Question 6

Market economy

Answer 6

Economic decisions and the pricing of goods are guided by the aggregate interactions of a country citizens and businesses alone. Little government intervention.

Question 7

Market Failure

Answer 7

The allocation of goods and services is inefficient.

Question 8

Merit Good

Answer 8

Positive to consume. Goods the government feels people will under-consume that ought to be subsidised or provided free as they have positive externalities.
(eg: education, healthcare)

Question 9

Micro economics

Answer 9

Economics at a local level concerned with single factors and effects of individual decisions.

Question 10

Mixed economy

Answer 10

Public and private sectors share the means of production

Question 11

Movement along the demand curve

Answer 11

A contraction or extension in the demand curve, this is where there is a change in demand.