Brainscape's Knowledge GenomeTM

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


See full index

Economics > Exam Definitions > Flashcards

Exam Definitions Flashcards

1
Q

Opportunity cost

A

The value of the next best alternative that is forgone when a choice is made

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

Relative scarcity

A

When our wants and needs are unlimited and the resources needed to fulfil these are limited

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

The value of the next best alternative that is forgone when a choice is made is known as?

A

Opportunity cost

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

A situation where resources are limited compared to demand is known as?

A

Relative scarcity

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

Relative prices

A

The price of one good or service in comparison to another shown in a ratio

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

The price of one good or service in comparison to another shown in a ratio is known as?

A

Relative price

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

The purpose of relative price is?

A

To display where resources need to be allocated

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

Consumer sovereignty

A

Where consumers determine what will be produced through their choices

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

Where consumers determine what will be produced through their choices is known as?

A

Consumer sovereignty

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

Living standards

A

Aggregate welfare of people in a country made up of material and non material factors

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

Aggregate welfare of people in a country made up of material and non material factors are known as?

A

Living standards

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

Utility

A

A measure of satisfaction, happiness or wellbeing

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

A measure of satisfaction, happiness or wellbeing is labeled?

A

Utility

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

Ordred preferences

A

The ordering of alternatives based on their relative utility

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

The ordering of alternatives based on their relative utility is known as?

A

Ordred preferences

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

Present bias

A

The tendency of people to give stronger weight to payoffs that are closer to the present time when considering trade-offs

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

The tendency of people to give stronger weight to payoffs that are closer to the present time when considering trade-offs is known as?

A

Present bias

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

Framing

A

How options are presented through advertising

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

How options are presented through advertising is known as?

A

Framing

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

Positive and negative externalities

A

The positive and negative effect an activity imposes on an unrelated third party

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

The positive and negative effect an activity imposes on an unrelated third party are known as?

A

Positive and negative externalities

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

Nudge

A

Subtle pushes to influence people into making certain choices without incentives

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

Subtle pushes to influence people into making certain choices without incentives is known as?

A

Nudge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Bounded rationality

A

The idea that in decision-making, rationality of individuals is limited by the information they have

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

The idea that in decision-making, rationality of individuals is limited by the information they have is known as?

A

Bounded rationality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Complementary goods

A

A good that is used with another good

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

A good that is used with another good is known as a

A

Complementary good

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Veblen good

A

A good where the demand rises when the price of the good increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is an example of a Veblen good?

A

A exclusive/prestigious house in a neighbourhood

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

A good where the demand rises when the price of the good increases is known as a

A

Veblen good

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Price mechanism

A

The way changing market conditions influence the allocation of resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

The way changing market conditions influence the allocation of resources is known as?

A

Price mechanism

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Price

A

The amount of money expected, required, or given in payment for something

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

The amount of money expected, required, or given in payment for something is known as?

A

Price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Market

A

Anyplace where buyers and sellers interact to exchange goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Anyplace where buyers and sellers interact to exchange goods and services is known as a?

A

Market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Resource allocation

A

The process of allocating scarce factors of production among alternative areas of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

The process of allocating scarce factors of production among alternative areas of production is known as?

A

Resource allocation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Substitute goods

A

A good or service that serves the same purpose as another good or service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

A good or service that serves the same purpose as another good or service are known as?

A

Substitute goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Anchoring effect

A

The common human tendency to rely too heavily on the first piece of information offered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

The common human tendency to rely too heavily on the first piece of information offered is known as?

A

The anchoring effect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Bounded willpower?

A

The fact that human beings often take actions that they know to be in conflict with their own long-term interests

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

The fact that human beings often take actions that they know to be in conflict with their own long-term interests is known as?

A

Bounded willpower

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Monopoly

A

An industry that is dominated by one seller of a product that does not have a close substitute

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

An industry that is dominated by one seller of a product that does not have a close substitute is known as a?

A

Monopoly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Monopolistic competition

A

A type of imperfect competition such that many producers sell products that are differentiated from one another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

A type of imperfect competition such that many producers sell products that are differentiated from one another is known as a?

A

Monopolistic competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Perfect competition

A

A market where there are many buyers and sellers, homogenous products, freedom of entry into a market and perfect information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

A market where there are many buyers and sellers, homogenous products, freedom of entry into a market and perfect information is known as a?

A

Perfect competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Triple bottom line

A

An accounting framework with three parts which are social, environmental (or ecological) and financial

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

An accounting framework with three parts which are social, environmental (or ecological) and financial is known as the?

A

Triple bottom line

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Predatory pricing

A

The illegal act of charging low prices in order to drive a competitor out of the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

The illegal act of charging low prices in order to drive a competitor out of the market is known as

A

Predatory pricing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

Cartel conduct

A

When two or more firms agree not to compete, and join to make strategies to manipulate the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

When two or more firms agree not to compete, and join to make strategies to manipulate the market it is known as?

A

Cartel conduct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Law of demand

A

As the price of a product goes up, the demand goes down and vice versa

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

As the price of a product goes up, the demand goes down is known as the?

A

Law of demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Law of supply

A

As the price of a good or service increases, there will be a increase in the quantity supplied

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Law of demand

A

As the price of a product goes up, the demand goes down and vice versa

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

As the price of a product goes up, the demand goes down is known as the?

A

Law of demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

a state where economic forces such as supply and demand are balanced and in the absence of external influences is known as?

A

Equilibrium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

As the price of a good or service increases, there will be a increase in the quantity supplied is known as the?

A

Law of supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

Equilibrium

A

A state where economic forces such as supply and demand are balanced and in the absence of external influences

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

a state where economic forces such as supply and demand are balanced and in the absence of external influences is known as?

A

Equilibrium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Productivity

A

The volume of output that is produced from a number of inputs and refers to how well factors of production combine to produce goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

The volume of output that is produced from a number of inputs and refers to how well factors of production combine to produce goods and services is known as?

A

Productivity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

What is aggregate demand?

A

The total expenditure on Australian goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

The total expenditure on Australian goods is known as?

A

Aggregate demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

What us aggregate supply?

A

The total value of goods and services available for sale in a economy in a given time frame

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

The total value of goods and services available for sale in a economy in a given time frame is known as?

A

Aggregate supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

What is allocative efficiency?

A

A type of efficiency measured by how well resources are allocated and whether or not living standards are maximised as a result

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

A type of efficiency measured by how well resources are allocated and whether or not living standards are maximised as a result is known as?

A

Allocative efficiency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

What is a Balanced budget?

A

When government revenue is the same as government expenditure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

When government revenue is the same as government expenditure it is known as a?

A

Balanced budget

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

What is the Benefit cost ratio?

A

A ratio of benefits where a ratio greater than one indicates a projects benefits outweigh the costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

A ratio of benefits where a ratio greater than one indicates a projects benefits outweigh the costs is known as?

A

The Benefit cost ratio

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

What is budget constraint?

A

The amount of income consumers have at their disposal to spend on goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

The amount of income consumers have at their disposal to spend on goods and services is known as?

A

Budget constraint

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

What is budget surplus?

A

When government revenue exceeds government expenditure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

When government revenue exceeds government expenditure it is known as a?

A

Budget surplus

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

What is business confidence?

A

The communities perception of their future levels of sales and profitability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

The communities perception of their future levels of sales and profitability is known as?

A

Business confidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

What is capital?

A

Resources that have been made by combining labour and natural resources to create a more sophisticated input in the production process, “machinery”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

Resources that have been made by combining labour and natural resources to create a more sophisticated input in the production process, “machinery” are known as?

A

Capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

What is a commodity?

A

Raw materials such as minerals and agricultural products

87
Q

Raw materials such as minerals and agricultural products are known as?

A

Commodities

88
Q

What are company taxes?

A

Taxes paid by corporations

89
Q

Taxes paid by corporations are known as?

A

Company taxes

90
Q

What is a competitive market?

A

Where all economic agents are price takers, and no individual buyer or seller has the power to influence market prices

91
Q

Where all economic agents are price takers, and no individual buyer or seller has the power to influence market prices it is known as a?

A

Competitive market

92
Q

What is consumer confidence?

A

An economic indicator that measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation

93
Q

An economic indicator that measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation is known as?

A

Consumer confidence

94
Q

What is consumer sentiment?

A

Consumer confidence

95
Q

What is a consumer surplus?

A

The benefit consumers receive if they obtain a good or service for less than the maximum they are willing to pay?
Eg If someone was willing to buy a house for $600,000 and got it for $500,000 the consumer surplus is $100,000

96
Q

The benefit consumers receive if they obtain a good or service for less than the maximum they are willing to pay it is known as a?

A

Consumer surplus

97
Q

What is consumption expenditure?

A

An exchange of money for goods and services

98
Q

An exchange of money for goods and services is known as?

A

Consumption expenditure

99
Q

What is contraction?

A

A downturn in economic activity

100
Q

A downturn in economic activity is known as a?

A

Contraction

101
Q

What is a cost-benefit analysis?

A

A comparison of the expected costs and the expected benefits of a particular course of action or project

102
Q

A comparison of the expected costs and the expected benefits of a particular course of action or project is known as a?

A

Cost benefit analysis

103
Q

What is a default?

A

When borrowers fail to promptly pay interest on a loan or the principle on a loan when it falls due

104
Q

When borrowers fail to promptly pay interest on a loan or the principle on a loan when it falls due it is known as a?

A

Default

105
Q

What is deflation?

A

A decrease in the average price level over time

106
Q

A decrease in the average price level over time is known as?

A

Deflation

107
Q

What is depreciation?

A

When one currency is able to purchase less of another currency

108
Q

When one currency is able to purchase less of another currency it is known as?

A

Depreciation

109
Q

What is a direct tax?

A

A tax paid directly by economic agents, normally based on the income they earn

110
Q

A tax paid directly by economic agents, normally based on the income they earn is known as a?

A

Direct tax

111
Q

What is disequilibrium?

A

When the market is in a state of excess demand or supply

112
Q

When the market is in a state of excess demand or supply it is known as?

A

Disequilibrium

113
Q

What are dividends?

A

The payment of profit to shareholders

114
Q

The payment of profit to shareholders are known as?

A

Dividends

115
Q

What are economic agents?

A

Any entity such as a person, household, government or business that makes economic decisions

116
Q

Any entity such as a person, household, government or business that makes economic decisions is known as a?

A

Economic agent

117
Q

What is a efficient allocation of resources?

A

A situation where the economies scarce factors of production are allocated to the production of the goods and services that society values most

118
Q

A situation where the economies scarce factors of production are allocated to the production of the goods and services that society values most is known as a?

A

Efficient allocation of resources

119
Q

What is elasticity?

A

The responsiveness of demand and supply to a change in a variable such as price

120
Q

The responsiveness of demand and supply to a change in a variable such as price is known as?

A

Elasticity

121
Q

What is equilibrium price?

A

The price at which the quantity demanded is equal to the quantity supplied

122
Q

The price at which the quantity demanded is equal to the quantity supplied is known as the?

A

Equilibrium price

123
Q

What is equity?

A

The ownership of assets such as shares

124
Q

The ownership of assets such as shares is known as?

A

Equity

125
Q

What are ethics?

A

The moral principles that guide a persons behaviour and can therefore influence the consumption and production of goods

126
Q

The moral principles that guide a persons behaviour and can therefore influence the consumption and production of goods are known as?

A

Ethics

127
Q

What are externalities?

A

When the production or consumption of a good or service has an effect on a third party or bystander

128
Q

When the production or consumption of a good or service has an effect on a third party or bystander, it is known as a?

A

Externality

129
Q

What is factor income?

A

The total returns of production for the contribution to production

130
Q

The total returns of production for the contribution to production is known as?

A

Factor income

131
Q

What is financial capital?

A

Funding or money that is typically used to finance the acquisition of assets

132
Q

Funding or money that is typically used to finance the acquisition of assets is known as?

A

Financial capital

133
Q

What is fiscal drag?

A

The deflationary effect of a progressive taxation system on a country’s economy. As wages rise, a higher proportion of income is paid in tax

134
Q

The deflationary effect of a progressive taxation system on a country’s economy. As wages rise, a higher proportion of income is paid in tax is known as?

A

Fiscal drag/Bracket creep

135
Q

What are fixed costs?

A

Costs of production that do not vary with the quantity of goods or services produced and are present regardless

136
Q

Costs of production that do not vary with the quantity of goods or services produced and are present regardless are known as?

A

Fixed costs

137
Q

What is free trade?

A

Where nations can engage in international trade without facing protection or trade barriers from other countries

138
Q

Where nations can engage in international trade without facing protection or trade barriers from other countries, it is know as?

A

Free trade

139
Q

What are fringe benefits?

A

Non-monetary reward for contribution to the production process
Eg company car

140
Q

Non-monetary reward for contribution to the production process are known as?

A

Fringe benefits

141
Q

What is GDP

A

Gross domestic product

142
Q

What is GDP per capita?

A

GDP per person

143
Q

What are goods?

A

Physical items of value that are traded in markets

144
Q

Physical items of value that are traded in markets are?

A

Goods

145
Q

What is government business enterprise?

A

A business owned and operated by the government

146
Q

A business owned and operated by the government is known as?

A

Government business enterprise

147
Q

What is homo economicus?

A

The rational economic man that is trying to maximise utility by purchasing goods and services that reflect their preferences

148
Q

The rational economic man that is trying to maximise utility by purchasing goods and services that reflect their preferences is known as?

A

Homo economicus

149
Q

What is income?

A

Money that is typically received on a regular or recurring basis

150
Q

Money that is typically received on a regular or recurring basis is known as?

A

Income

151
Q

What is indirect tax?

A

A tax paid by economic agents via the purchase of goods and services

152
Q

A tax paid by economic agents via the purchase of goods and services is known as?

A

Indirect tax

153
Q

What are interest rates?

A

The cost of borrowing money or the rate of return from lending money

154
Q

The cost of borrowing money or the rate of return from lending money are known as?

A

Interest rates

155
Q

What is investment expenditure?

A

The purchase of new equipment

Eg factory/inventory

156
Q

The purchase of new equipment

Eg factory/inventory is known as?

A

Investment expenditure

157
Q

What is labour cost advantage?

A

When a countries labour cost is lower than another

158
Q

When a countries labour cost is lower than another it is known as the?

A

Labour cost advantage

159
Q

What is lasseiz faire?

A

The belief in a free market with minimal government intervention

160
Q

The belief in a free market with minimal government intervention is known as?

A

Lasseiz faire

161
Q

What is the law of diminishing marginal utility?

A

Where each additional unit of a good or service generates less utility and thus the price goes down

162
Q

Where each additional unit of a good or service generates less utility and thus the price goes down is known as the?

A

Law of diminishing marginal utility

163
Q

What is marginal utility?

A

The satisfaction that consumers gain from consuming an additional unit of a good or service

164
Q

What is market failure?

A

A situation in which the allocation of goods and services is not efficient

165
Q

A situation in which the allocation of goods and services is not efficient is known as?

A

Market failure

166
Q

What is market power?

A

The ability of any particular business to manipulate prices or quantities

167
Q

The ability of any particular business to manipulate prices or quantities is known as?

A

Market power

168
Q

What is market structure?

A

The way markets are structured based on the type of buyers and sellers present

169
Q

The way markets are structured based on the type of buyers and sellers present is known as?

A

Market structure

170
Q

What is a monopolistic competition?

A

Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes.

171
Q

What market is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes?

A

Monopolistic competition

172
Q

What is multibranding?

A

Where companies market their products under separate and distinct brand names

173
Q

Where companies market their products under separate and distinct brand names it is known as?

A

Multibranding

174
Q

What are net benefits?

A

Benefits less costs - can be good or bad

175
Q

What are net exports?

A

Exports minus imports

176
Q

What are non material living standards

A

The aspects of a persons quality life that can not be measured by monetary factors

177
Q

The aspects of a persons quality life that can not be measured by monetary factors are known as?

A

Non material living standards

178
Q

What is nudge?

A

Subtly coaxing people into making good choices without having to resort to heavy financial incentives or sanctions

179
Q

Subtly coaxing people into making good choices without having to resort to heavy financial incentives or sanctions is known as?

A

Nudge

180
Q

What are preferences?

A

A consumers likes and dislikes

181
Q

A consumers likes and dislikes are known as?

A

Preferences

182
Q

What is a producer surplus

A

An economic measure of the difference between the amount a producer of a good receives and the minimum amount the producer is willing to accept for the good

183
Q

An economic measure of the difference between the amount a producer of a good receives and the minimum amount the producer is willing to accept for the good is known as?

A

A producer surplus

184
Q

What is product differentiation?

A

The marketing of generally similar products with minor variations that are used by consumers when making a choice

185
Q

The marketing of generally similar products with minor variations that are used by consumers when making a choice is known as?

A

Product differentiation

186
Q

What is the production possibility frontier?

A

A diagram that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed

187
Q

A diagram that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed is known as the?

A

Production possibility frontier

188
Q

What is productivity?

A

An economic measure of output per unit of input

189
Q

An economic measure of output per unit of input is?

A

Productivity

190
Q

What is profit?

A

When sales exceed expenses

191
Q

When sales exceed expenses it is known as?

A

Profit

192
Q

What is a progressive tax?

A

A tax that takes more from high income earners

193
Q

A tax that takes more from high income earners is known as a?

A

Progressive tax

194
Q

What is real income?

A

The income of an individual or group after taking into consideration the effects of inflation on purchasing power

195
Q

The income of an individual or group after taking into consideration the effects of inflation on purchasing power is known as?

A

Real income

196
Q

What is relative price?

A

The price of one good compared to another

197
Q

The price of one good compared to another is known as?

A

Relative price

198
Q

What is relative scarcity?

A

The circumstance that we do not have enough resources to satisfy all our wants and needs

199
Q

The circumstance that we do not have enough resources to satisfy all our wants and needs is known as?

A

Relative scarcity

200
Q

What is a subsidiary?

A

A company controlled by a holding company

201
Q

A company controlled by a holding company is known as a

A

Subsidiary

202
Q

What is a subsidy?

A

A sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low

203
Q

A sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low is known as?

A

A subsidy

204
Q

What is an tax incentive?

A

An aspect of a country’s tax code designed to incentivize, or encourage a particular economic activity

205
Q

What are Diminishing marginal returns?

A

The decrease in the marginal output of a production process as the amount of a single factor of production is increased, while the amounts of all other factors of production stay constant

206
Q

The decrease in the marginal output of a production process as the amount of a single factor of production is increased, while the amounts of all other factors of production stay constant is known as?

A

Diminishing marginal returns

207
Q

What is a sharing economy?

A

An economic system in which assets or services are shared between private individuals, either free or for a fee, typically by means of the Internet

208
Q

An economic system in which assets or services are shared between private individuals, either free or for a fee, typically by means of the Internet is known as?

A

Sharing economy

209
Q

What is market power?

A

The ability of a firm to profitably raise the market price of a good or service over marginal cost

210
Q

The ability of a firm to profitably raise the market price of a good or service over marginal cost is known as?

A

Market power

211
Q

What are some characteristics of conventional economics

A

For economic analysis, the assumptions made about people don’t have to be realistic, People are pretty much all the same people are different, with different tastes and preferences, markets are efficient even if they appear to be inefficient, efficiency is everywhere

212
Q

What is expansion along the curves?

A

When price goes up along with supply

213
Q

What is contraction along the curves?

A

When price goes down along with supply

Economics (6 decks)

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