Brainscape's Knowledge GenomeTM

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


See full index

Economics > November Exams > Flashcards

November Exams Flashcards

1
Q

What Is A Positive Economic Statement?

A

Are precise and fact-based. They can proved with data.

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

What Is A Normative Economic Statement?

A

Is similar to an opinion and is based on the value judgements of the individual giving the opinion or making the statement.

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

What Is A Single Market

A

The term single market refers to the EU as one territory, without any internal borders or other obstacles to the free movement of goods, services, capital and people

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

What Is A Customs Union?

A

The EU is a customs unions
>free trade between member states, i.e. no trade barriers such as tariffs
>a common external tariff for non-members

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

What Is Economics

A

Economics is a social science. It studies human behaviour. Economics studies how limited resources are allocated to satisfy our unlimited wants and needs.

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

What Is Opportunity Cost?

A

Is defined as the best alternative foregone when a choice is made.

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

Individual Demand

A

Refers to the quantity demanded of a good or service by individual consumers at different prices.

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

Market Demand

A

Refers to the aggregate quantity of a good or service that would be demanded by all consumers in a market at different prices

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

What Is Derived Demand?

A

Applies to factors of production. It is the demand for a good, not for its own sake but for its use in the production of other goods.

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

What Is Composite Demand?

A

Applies where goods have more than one use. An increase in demand for one product can result in a fall in supply of another product. E.g. milk

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

Joint Demand

A

Refers to the complementary goods that are bought and sold together. E.g. fish and chips.

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

What Is The Law Of Demand?

A

The Law of Demand states that as the price of a good/service falls, then the quantity demanded will rise. Vice Versa.

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

What Are Giffen Goods?

A

A low-income, non luxury product for which demand increases as the price increases and vice versa.

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

What Is A Normal Good?

A

Is a good for which demand rises and income rises, and falls when income falls.

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

What Is An Inferior Good?

A

A good that when income rises demand falls, and when income falls demand rises. E.g. own brand goods.

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

What Is The Law Of Supply?

A

The law of supply states that as the price rises for a good/service, then the quantity supplied will rise. When the price falls for a good/service, then the quantity will fall.

17
Q

What Is Consumer Surplus?

A

Consumer surplus is the difference between what a consumer actually pays for a good/service and what they would be willing to pay, rather than do without the good/service.

18
Q

What Is Producer Surplus?

A

Producer surplus is the difference between the price the seller would have accepted for a good/service and the price the seller actually receives

19
Q

What is Utility?

A

Utility refers to the benefit that an individual gets from consuming a good/service. Measured in utils.

20
Q

What Is Total Quantity?

A

Refers to the total benefit that an individual gets from from consuming a number of utils of a good/service.

21
Q

What Is Marginal Utility

A

Refers to the extra benefit that an individual gets from consuming an extra unit of a good/service.

22
Q

What Is Consumer Sentiment?

A

Is a mathematical measurement of the health of the economy as indicated by consumer opinion.
Positives
> as consumer may be less concerned about their future economic wellbeing, the might also be inclined to save less money
Negatives
>If consumers are negative this leads to decrease in demands for goods and services.

23
Q

What is a rational consumer?

A

A rational consumer is a logical or reasonable consumer. Makes decisions using intelligence rather than emotion.

24
Q

What is an impulse purchase?

A

Is a purchase that is made on the spur of the moment that the consumer had not planned in advance.

25
Q

What is the LDMU?

A

The LDMU states that as a consumer consumes more units of a good , the extra satisfication of marginal utility derived from each additional unit consumed will eventually decline

26
Q

What is the Equi-marginal returns?

A

The Equi-marginal principle of consumer behaviour states that a consumer who wants to maximise utility will allocate his or her money so that the ratio of marginal utility to price is the same for all goods consumed. Mu1/p1 = MU2/P2

27
Q

What is PED?

A

PED measures the percentage change in the quantity demanded of a good/service as a result in percentage change in price.

Economics (4 decks)

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