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Uk- ALevel AQA: Economics > Atm Key words > Flashcards

Atm Key words Flashcards

1
Q

Economic welfare

A

The benefit or satisfaction and individual or society gets from the allocation of resources

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2
Q

Opportunity cost

A

The next best alternative forgone

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3
Q

Economic goods

A

It’s that are scarce therefore have an opportunity cost

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4
Q

Free goods

A

Goods that have no opportunity cost. for example, air

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5
Q

Factor markets

A

Market for factors of production the make of the goods and services such as labour and raw materials

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6
Q

Free market economy

A

Limited government involvement in providing goods and services, prices and output is determined by the forces of supply and demand

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7
Q

Production possibility boundary

A

Indicates the max output possible achieved with fixed set of resources and technology at the time

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8
Q

Productive efficiency

A

Firm operates at minimum average cost that produces the maximum possible output from inputs

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9
Q

Allocative efficiency

A

A cheat when a firm is supplying what consumers are demanding. Also it is not possible to make someone better off without making someone worse off, or you cannot make more goods without making less of another, P equals MC

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10
Q

Productivity

A

A measure of efficiency; ratio of inputs to outputs

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11
Q

Valued judgement

A

Statements or opinions expressed that are not testable

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12
Q

Normative statement

A

Opinions that require value judgements to be made

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13
Q

Positive statement

A

Statements that can be tested against world data

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14
Q

Market demand

A

Total demand in the market for a good, sum of all individuals demand at each given price level

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15
Q

Normal good

A

Because of services which will increase in demand as incomes rise

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16
Q

Composite demand

A

Are good that has more than one purpose, as the demand for one purpose rises the supply for the other decreases

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17
Q

Supply

A

The amount produces plants produce at a given price level. There is a positive relationship between price and supply

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18
Q

Extension supply

A

Increase in supply because the market prices risen

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19
Q

Contraction in supply

A

Amount offered for sale is reduced because the price level has fallen

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20
Q

Joint supply

A

Production of one good results in the production of another

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21
Q

Equilibrium

A

Price at which the man is equal to Supply

22
Q

Disequilibrium

A

Where supply does not equal demand

23
Q

Demand

A

Amount of a product that consumers are willing and able to purchase at different prices over a period of time. There is a negative correlation between price and demand

24
Q

Excess supply

A

Supply out of the ticket the price is greater than demand-lower prices

25
Q

Excess demand

A

Demand is greater than supply-increase price

26
Q

Maximum price

A

Price ceiling above which price is not allowed to increase

27
Q

Minimum prices

A

Price floor below which the price is not allowed to decrease any further

28
Q

Price elasticities of demand

A

How responsive demand is to a change in the price level

29
Q

Price elasticities of supply

A

How responsive supplies to a change in the price level

30
Q

Cross elasticities of demand

A

Measures the relationship between two different products

31
Q

Incidence of tax

A

The proportion of tax that is passed on to the consumer

32
Q

Income elasticities of demand

A

Proportion to which demand changes when there is a change in income

33
Q

Inferior products

A

These products have a negative income elasticities of demand

34
Q

Market failure

A

Where the free market fails to produce what consumer require at the lowest possible cost. I.e. economic efficiency is not achieved. There will also not be an equitable distribution of resources

35
Q

Buffer stock

A

And intervention system which aims to limit fluctuations of the price of the commodity

36
Q

Derived

A

When the demand for a good or service comes from the demand for another good or service

37
Q

Substitutes

A

Goods that can be used as alternatives to other goods

38
Q

Compliments

A

Goods that are consumed together

39
Q

Factor market

A

The market for the factors of production that make other goods and services such as labour and raw materials

40
Q

Setter asparagus

A

All of the factors remain equal

41
Q

Infrastructure

A

Man-made environment. Includes transport and communication networks

42
Q

Economies of scale

A

Reduction in average costs as the firm expands its output

43
Q

Diseconomies of scale

A

Increase in average costs as the firm expands its output

44
Q

External economies of scale

A

Reduction in the firms average cost because the industry/area has grown or improved. The firm may stay the same size but it is benefiting from being part of a flourishing industry or area.

45
Q

Consumer surplus

A

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay. Consumer surplus a shame but the area under the demand curve and above the price

46
Q

Producer surplus

A

The difference between the price that produces are willing and able to supply a good four and the price that they actually receive. Produces a plus a shame but the area above the supply curve the below the price.

47
Q

National Wealth

A

Is the Value of a countries assets minus its liabilities

48
Q

Gross National Product

A

GDP plus and minus it’s money in and out from abroad.

49
Q

Multiplier Effect

A

The number of times a rise in national income exceeds the rise in injections of demand that caused it.
k = 1/1-mpc

50
Q

National income

A

The flow of new output produced by the economy in a particular period

51
Q

National Output

A

The same as national income, namely the flow of new output produced by the economy in a particular period

52
Q

Accelerator Effect

A

When national output increases disproportionately as investment increases, further increasing national output at a faster rate

Uk- ALevel AQA: Economics (3 decks)

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