Cr A revision

Question 1

Market

Answer 1

Where producers and consumers meet to sell & buy goods & services

Question 2

Market example

Answer 2

amazon

Question 3

Factors of production

Answer 3

The imputs used to produce a good or service in order to produce income

Question 4

factors of production example

Answer 4

Land, Labour, Capital, Enterprise

Question 5

Excise Taxes

Answer 5

Sin Taxes, A tax on specific goods and services due to their ability, or perception, to be harmful or costly to society

Question 6

Excise Taxes example

Answer 6

Cigarettes

Question 7

Direct tax

Answer 7

A tax, such as an income tax, which is levied on the income or profits of the person who pays it

Question 8

direct tax example

Answer 8

estate tax, capital gains tax

Question 9

merit goods

Answer 9

commodities that the public sector provides free or cheaply because the government wishes to encourage their consumption

Question 10

merit good example

Answer 10

healthcare

Question 11

subsidy

Answer 11

goods and services that are of strategic importance to a country that are given money from the government in order to keep the prices affordable for the consumers while allowing the producer to continue the profit

Question 12

subsidy example

Answer 12

SL

Question 13

Normal goods

Answer 13

a good that experiences an increase in demand due to an increase in customers income

Question 13

Normal goods example

Answer 13

expensive cars

Question 14

opportunity cost

Answer 14

what you lose in exchange for doing something else

Question 15

opportunity cost example

Answer 15

4 movies vs a concert

Question 16

tariffs

Answer 16

the tax added to internationally imported goods

Question 17

tariff example

Answer 17

chinese shoes in the US

Question 18

complementary goods

Answer 18

goods/services that are typically used together

Question 19

complementary good example

Answer 19

printer & ink

Question 20

VAT

Answer 20

value added tax - a type of sales tax that is added to every stage of production

Question 21

VAT example

Answer 21

15% VAT on €100 bag = €115 w/ €15 going to government

Question 22

Indirect tax

Answer 22

taxes which don’t directly go from person to government

Question 23

indirect tax example

Answer 23

sales tax on a car

Question 24

public goods

Answer 24

goods not provided by private sector - non-rivalrous and non-excludable

Question 25

public goods example

Answer 25

beach shower

Question 26

inferior goods

Answer 26

a good that has a decrease in demand when consumers income increases

Question 27

inferior goods example

Answer 27

second hand car

Question 28

capital gains tax

Answer 28

a tax paid by an investor upon selling their asset, based on the amount by which the asset appreciated during the time it was held

Question 29

capital gains tax example

Answer 29

stock shares sold any time during 2022 must be reported as capital gains in the 2022 tax return

Question 30

difference between a good and service

Answer 30

goods are material and tangible things on a market whereas services are intangible

Question 31

good example

Answer 31

a shoe

Question 32

service example

Answer 32

tutoring

Question 33

economic problem

Answer 33

resources are scarce, human wants are unlimited, resources have alternative uses, we must choose which wants to satisfy

Question 34

law of demand

Answer 34

the price of a good/service is inversely related to the quantity demanded; demand quantity will go down as prices increase

Question 35

law of supply

Answer 35

as the price of a good/service rises, the quantity supplied of the good/service will usually increase, ceteris paribus. The two variables are directly related

Question 36

determinants of demand

Answer 36

tastes/preferences, number of consumers, expectations, income, price of related goods

Question 37

example of tastes/preferences - demand

Answer 37

cultural bias

Question 38

example of number of consumers - demand

Answer 38

changes in age structure of the population

Question 39

example of expectations - demand

Answer 39

seasonal changes

Question 40

example of income - demand

Answer 40

inferior and normal goods

Question 41

price of related goods - demand

Answer 41

price of substitute good

Question 42

determinants of supply

Answer 42

price of resources, technology, taxes and subsidies, number of producers, expectations, supply shocks

Question 43

elasticity

Answer 43

the degree to which a demand or supply is sensitive to changes in price or income

Question 44

price elasticity of supply

Answer 44

the responsiveness to the supply of a good or service after a change in its market price

Question 45

price elasticity of demand

Answer 45

the responsiveness to the demand of a good or service after a change in its market price

Question 46

example of inelasticity

Answer 46

necessities

Question 47

example of elasticity

Answer 47

wants

Question 48

determinants of PED

Answer 48

HINTS - habits, income, necessity, time, substitute

Question 49

determinants of PES

Answer 49

time, availability of resources

Question 50

how can a government raise revenue

Answer 50

individual income taxes, corporate income taxes, social insurance taxes, taxes on goods and services, and property taxes

Question 51

how does the government intervene in the supply and demand for some goods and services

Answer 51

the government will interfere with the market, putting in price ceilings or price floors, charging taxes, or using other measures to reshape the economy