Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics - Micro > Defos > Flashcards

Defos Flashcards

1
Q

Opportunity cost

A

cost of the next best alternative forgone when a choice is made

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Division of labour

A

occurs when specialisation has taken place where the productive process is broken down into separate tasks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The law of demand

A

there is an inverse relationship between price and quantity demanded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Demand

A

the quantity of a good or service that consumers are willing and able to buy at a given price in a given time period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

supply

A

the quantity of a good or service that suppliers are willing and able to supply at a given price in a govern time period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

law of supply

A

there is a positive relationship between price and quantity supplied

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

consumer surplus

A

the difference between the price that consumers are willing and able to pay for a good or service and the price they actually pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

producer surplus

A

the difference between the price producers are willing and able to supply a good or service at and the price they actually receive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

a market

A

any place where buyers meet sellers to exchange goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

PED

A

measures the responsiveness of quantity demanded given a change in price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

PES

A

measures the responsiveness of quantity supplied given a change in price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

YED

A

measures the responsiveness of quantity demanded given a change in income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

XED

A

measures the responsiveness of quantity demanded of good A given a change in price of good B

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

market failure

A

when the free market fails to allocate resources at the socially optimal level this leads to a net loss in social welfare

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

negative externalities

A

detrimental third party effects as a result of the actions of a separate agent as a result there is an impact on welfare (society)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

positive externalities

A

third party benefits that come about as a result of actions from a separate agent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

merit goods

A

underconsumed and under provided in the free market because of missing information about their full benefits, have positive externalities in consumption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

demerit goods

A

overconsumed and over provided in the free market because of missing information about what their full effects are, have negative externalities in consumption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

asymmetric information

A

information exists but one party has got more information than another party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

public goods

A

non-excludable, non-rival

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

quasi-public goods

A

public goods which might have some characteristics but not all of them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

indirect taxes

A

taxes which can be passed onto consumers (normally at a higher price)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

subsidies

A

money grants given to firms, the intention to lower costs of production to increase output and reduce price

24
Q

state provision

A

when the government comes and provides all the resources in that market

25
Q

regulation

A

government suppling rules and laws for firms and consumers to abide by

26
Q

government failure

A

occurs when the cost of implementing the policy outweighs the benefits which came about from the policy

27
Q

minimum price

A

price control set by the government normally above equilibrium price in a market to safeguard the incomes of producers or to ensure that workers in the market get a good enough wage to support a decent standard of living

28
Q

maximum price

A

price control, fixing the price normally below the equilibrium to support consumers

29
Q

fixed costs

A

costs that don’t vary with output

30
Q

variable costs

A

costs that vary with output

31
Q

total cost

A

total fixed costs + total variable costs

32
Q

marginal cost

A

how much extra does it cost to produce another unit

33
Q

internal economies of scale

A

when a firm itself benefits from economies sclae

34
Q

external economies of scale

A

when the entire industry grows therefore all firms in the industry benefit from economies scale

35
Q

economies of scale

A

a reduction in average cost (long run), as output increases

36
Q

diseconomies of scale

A

LRAC rises as output increases

37
Q

normal profit

A

minimum level of profit required to keep factors of production in there current use

38
Q

supernormal profit

A

any profit made above normal profit

39
Q

subnormal profit (loss)

A

any economies profit below normal profit. the profit being made is not enough to cover the opportunity cost of production

40
Q

profit maximisation =

A

MC=MR

41
Q

revenue maximisation =

A

MR=0

42
Q

sales maximisation =

A

AC=AR

43
Q

allocative efficiency =

A

AR=MC

44
Q

productive efficiency =

A

minimum point on AC curve

45
Q

dynamic efficiency =

A

are supernormal profits being made to be reinvested?

46
Q

X efficiency =

A

any point on AC

47
Q

price discrimination

A

when different consumers are charged different prices

48
Q

privatisation

A

when state run organisations are sold off to the private sector

49
Q

deregulation

A

when government reduce legal barriers to entry in given industries

50
Q

nationalisation

A

process of taking an industry into public ownership

51
Q

regulatory bodies

A

specialised regulators who look after specific industries and companies operating within those industries

52
Q

cost benefit analysis

A

decision making tool accounting for the social costs and social benefits of a project overtime to establish a net present value

53
Q

derived demand

A

demand for a good or factor of production, not wanted for its own sake, which is a consequence of the demand for something else

54
Q

Joint demand

A

occurs when demand for two goods is interdependent

55
Q

composite demand

A

Demand for a good that has multiple different uses

56
Q

joint supply

A

a product or process that can yield two or more outputs.

Economics - Micro (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions