Non-Price Changes Terms Flashcards
1
Q
Related Goods
A
Goods that are produced using similar resources and have a similar purpose
2
Q
Improvements in Technology
A
When a producer invests in new machinery or finds a more efficient way of producing a good or service (increases productivity)
3
Q
Tariff
A
A tax on imported goods (making them more expensive)
4
Q
Quota
A
A limit placed on the quantity of imported goods (making them harder to import)
5
Q
Costs of Production
A
The costs involved in making, producing and selling a good or service
6
Q
Sales tax
A
A payment from firms to the government to reduce production by making a good or service more expensive to produce.
7
Q
Subsidy
A
A payment from the government to firms to encourage increased production by making a good or service cheaper to produce.
