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Define microeconomics
the study of small economic systems that are part of national or international systems (small picture)
Define inequality
a lack of quality
Which policy deals with taxes?
Fiscal
Name market structures
Monopoly, oligopoly, monopolistic competition, perfect competition, monopsony
Define sole trader.
a single person who owns and runs their own business
Define macroeconomics
the study of large economic systems, such as those of whole countries or areas of the world (big picture)
What is poverty trap?
a self-reinforcing cycle where poor individuals, families, or countries cannot escape poverty
Which policy deals with money supply?
Monetary
Name three economic sectors
Primary, secondary, tertiary
Define partnership.
A formal arrangement where two or more people or entities own, manage, and operate a company together.
Define scarce resources
Limited resources that cannot satisfy all human wants and needs.
Name 4 functions of government
legal framework, public services, provides transfer payments, collects taxes
Define the term: transfer payment
Money given by the government to a person where the person does not give any goods or services back in return.
Define market
A place where buyers and sellers meet
What is the difference between limited and unlimited liability?
Limited liability - owners can only lose the money they put into the business.
Unlimited liability makes owners fully responsible/liable for all debts.
What is opportunity cost?
The real cost of doing something, including the cost of things that you cannot do because of the choice you have made.
Name all types of taxes you know
What is the difference between contractionary and expansionary policy?
More or less regulation/control
Define market clearing price
The economic price where the quantity of a good/ service supplied equals the quantity demanded.
Name 4 functions of money
medium of exchange
a unit of account
a store of value
a standard of deferred payment
GDP, inflation, unemployment
What is the difference b/n tax evasion and tax avoidance?
Illegal vs legal
expansion, peak, contraction, trough
What is meant by Nash equilibrium?
A concept in game theory where no player has an incentive to change their strategy, assuming other players keep theirs unchanged.
Define fiat money
Government-issued currency that is not backed by a physical commodity like gold or silver.