Understand The Basics Of Health Economics 3 Flashcards
What are normal goods?
Goods for which an increase in income causes an increase in demand
Normal goods are typically essential items that consumers buy more of as their income rises.
What are inferior goods?
Goods for which an increase in income causes a fall in demand
Inferior goods are often lower-quality products that consumers buy less of as they can afford better alternatives.
What are superior goods?
Goods, also known as luxury goods, for which an increase in income causes a bigger percentage increase in demand
Superior goods often include high-end products and services.
Define substitute goods.
Goods that can be used for the same purpose and have alternatives
Examples include Panadol and Paracetamol, which both relieve headaches.
What are complementary goods?
Goods that are used together
Examples include plaster and cotton wool, syringe and needle.
What are merit goods?
Goods that people may underestimate the benefit of but often have positive externalities
Examples include exercise and education.
Define public goods.
Goods with no opportunity cost
Examples include breathing air and military defense.
What is demand?
The quantity the buyer is willing and able to buy at a specific period of time and at a specific price
Demand is influenced by various factors, including consumer income and preferences.
Fill in the blank: Demand must be associated with the consumer’s ability or _______.
purchasing power
This reflects the consumer’s capacity to buy goods and services.
True or False: The quantity demanded is always associated with a unit time.
True
Demand is measured over a specific time frame to assess changes accurately.
What special features does quantity demanded have?
It is defined in the context of a specific price and associated with a unit time
These features help in analyzing market behavior effectively.
