whole shabang

Question 1

need

Answer 1

human survival

Question 2

want

Answer 2

improves standard of living

Question 3

factors of production

Answer 3

countrys economic resources, Capital land labour enterprise

Question 4

basic economic problem

Answer 4

scarce resources, unlimited wants

Question 5

PPF

Answer 5

maximum output combinations of two goods

Question 6

economic growth

Answer 6

increase in productive capacity in time

Question 7

utility

Answer 7

satisfaction or benefit from consumptiom

Question 8

rational consumer

Answer 8

maximise utility/satisfaction

Question 9

marginal utility

Answer 9

utility gained from additional consumption

Question 10

diminishing marginal utility

Answer 10

consume more, gain less for each unit

Question 11

asymmetric information

Answer 11

one agent knows more than the other, giving them power in the transaction

Question 12

bounded rationality

Answer 12

try to be rational but cant due to imperfect information

Question 13

bounded self-control

Answer 13

have good intentions but lack self discipline

Question 14

rules of thumb

Answer 14

shortcuts in thinking

Question 15

anchoring

Answer 15

rely on particular pieces of information when making decisions

Question 16

availability bias

Answer 16

make judgements on probability from recent events

Question 17

social norms

Answer 17

influence of others on decisions

Question 18

altruism and fairness

Answer 18

motivated to do the right thing

Question 19

choice architecture

Answer 19

how choices are presented

Question 20

framing

Answer 20

how information is worded

Question 21

nudges

Answer 21

gentle suggestions influence decisions

Question 22

default choice

Answer 22

people choose default options

Question 23

market

Answer 23

buyers and sellers engage in trade

Question 24

competitive market

Answer 24

large no. of buyers and sellers with abundant information

Question 25

equilibrium price

Answer 25

demand=supply

Question 26

effective demand

Answer 26

the desire for good with the ability to pay

Question 27

substitute

Answer 27

the alternative to another good

Question 28

complement

Answer 28

consumed together with another good

Question 29

price elasticity of demand

Answer 29

response of %change in demand to a %change in price

Question 30

income elasticity of demand

Answer 30

response of %change in demand to a %change in income

Question 31

cross elasticity of demand

Answer 31

response of %change in demand A to a %change in price B

Question 32

supply

Answer 32

quantity of goods and services firms are willing and able to sell at a given price

Question 33

price elasticity of supply

Answer 33

response of %change in supply to a %change in price

Question 34

market disequilibrium

Answer 34

quantity demanded does not equal supply