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Economics > Cr A revision > Flashcards

Cr A revision Flashcards

1
Q

Market

A

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

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2
Q

Market example

A

amazon

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3
Q

Factors of production

A

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

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4
Q

factors of production example

A

Land, Labour, Capital, Enterprise

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5
Q

Excise Taxes

A

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

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6
Q

Excise Taxes example

A

Cigarettes

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7
Q

Direct tax

A

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

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8
Q

direct tax example

A

estate tax, capital gains tax

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9
Q

merit goods

A

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

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10
Q

merit good example

A

healthcare

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11
Q

subsidy

A

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

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12
Q

subsidy example

A

SL

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13
Q

Normal goods

A

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

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13
Q

Normal goods example

A

expensive cars

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14
Q

opportunity cost

A

what you lose in exchange for doing something else

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15
Q

opportunity cost example

A

4 movies vs a concert

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16
Q

tariffs

A

the tax added to internationally imported goods

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17
Q

tariff example

A

chinese shoes in the US

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18
Q

complementary goods

A

goods/services that are typically used together

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19
Q

complementary good example

A

printer & ink

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20
Q

VAT

A

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

21
Q

VAT example

A

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

22
Q

Indirect tax

A

taxes which don’t directly go from person to government

23
Q

indirect tax example

A

sales tax on a car

24
Q

public goods

A

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

25
Q

public goods example

A

beach shower

26
Q

inferior goods

A

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

27
Q

inferior goods example

A

second hand car

28
Q

capital gains tax

A

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

29
Q

capital gains tax example

A

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

30
Q

difference between a good and service

A

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

31
Q

good example

A

a shoe

32
Q

service example

A

tutoring

33
Q

economic problem

A

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

34
Q

law of demand

A

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

35
Q

law of supply

A

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

36
Q

determinants of demand

A

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

37
Q

example of tastes/preferences - demand

A

cultural bias

38
Q

example of number of consumers - demand

A

changes in age structure of the population

39
Q

example of expectations - demand

A

seasonal changes

40
Q

example of income - demand

A

inferior and normal goods

41
Q

price of related goods - demand

A

price of substitute good

42
Q

determinants of supply

A

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

43
Q

elasticity

A

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

44
Q

price elasticity of supply

A

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

45
Q

price elasticity of demand

A

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

46
Q

example of inelasticity

A

necessities

47
Q

example of elasticity

A

wants

48
Q

determinants of PED

A

HINTS - habits, income, necessity, time, substitute

49
Q

determinants of PES

A

time, availability of resources

50
Q

how can a government raise revenue

A

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

51
Q

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

A

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

Economics (1 decks)

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