economics - consumer sovereignty and the market

Question 1

GDP

Answer 1

gross domestic product

Question 2

per capita GDP -

Answer 2

how well off are the people? total production of goods and services per person

Question 3

how to find per capital GDP

Answer 3

australian GDP divided by people in Australia

Question 4

What leads to a stable economy?

Answer 4

capitalism/market economy

legitiate and lawful government

Question 5

what leads to a failed market?

Answer 5

inequity, externalites (consequences of an event that affects parties without this being reflected in the costs such as pollination of surrounding crops by bees who are doing this to produce honey - or polltuion) fluctuations etc

Question 6

Regulated capitalism

Answer 6

1. welfare state 2 carbon tax on emissions 3 competition legislation 4 government provision of public goods 5 restrictions and rules 6 macroeconomic management

Question 7

demand and supply

Answer 7

the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.
“by the law of supply and demand the cost of health care will plummet”

Question 8

consumer sovereignty

Answer 8

people are the best judge of the value to them of the goods they consume

Question 9

consumer interdependence

Answer 9

• the hedonic treadmill e.g. when someone on the street buys a new car it is more likely for those on the same street who see this to buy one too

Question 10

idealism

Answer 10

normative economic analysis of markets

Question 11

realism

Answer 11

positive economic analysis of markets

Question 12

consumer surplus

Answer 12

the benefits buyers receive from participating in the market

Question 13

producer surplus

Answer 13

the benefits sellers receive