Basic Economics
Supply and Demand
Resources
Market Failure
Goods
100
Define technical efficiency
Output is achieved with lowest possible inputs
100
Describe the meaning of inelastic supply
A change in price leads to a relatively small change in quantity supplied
100
The main reason why countries specialise in producing something
They can produce it at a lower cost
100
The name for the formation of laws by the government
Legislation
100
This indicates that a good is a normal good
It has positive income elasticity of demand
200
This is allocative efficiency
Firms produce exactly what is demanded so that welfare is maximised
200
This is consumer surplus
This is the difference between the price consumers are willing to pay for a good and equilibrium price
200
This is the market
Where buyers and sellers meet to exchange goods and services
200

Name any types of market failure

Income inequality, information failure, imperfect competition, externalities, missing markets, factor immobility

200
The word used when the government directly gives out a merit good
Provision
300
The four factors of production
Land, labour, capital and entrepreneurship
300
This is a good purchased along with other goods to satisfy a want.
A complement
300
This is production possibility frontier
This shows the maximum possible combination of economic goods that can be produced if all resources are used fully and efficiently
300
Name three things that can shift the supply curve
Taxes, subsidies, regulation, changes in production costs
300
The definition of non rivalry
Consumption by one doesn't restrict the consumption by another
400

What is Mr. Irby's first name?

What is Marshall!

400
This is how to calculate price elasticity of demand.
Percentage change in quantity demanded divided by percentage change in price
400
This is show by a shift of the PPF curve outward
Economic growth
400
Name three things that can shift demand
Increasing income, fashion and taste, population growth
400
The definition of non-excludability
Once it has been provided, no one can be excluded from benefiting from the public good
500
Define average variable costs
Total variable costs divided by output
500
This is producer surplus
The difference between the price at which producers are willing to supply a good and the equilibrium price
500
This is productive efficiency
When a level of production is achieved at lowest cost
500

Describe a positive or negative externality (or give an example of each)

Pollution (negative), riding a bike to work

500
This is a good that has a negative income elasticity of demand
Inferior good
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