government intervention
What type of economy does Ireland have , free enterprise, mixed, centrally planned
Mixed
What is utility measured in.
Utils.
What is PED
Measures the percentage change in QD of a good/service as a result in a percentage change in price
Name 3 leakages of the circular flow of income
Tax, saving, imports
What is a demerit good
A good that can have a negative effect on the consumer and negative externalities when consumed
State the law of diminishing marginal utility
As consumers consumer additional good the extra satisfaction or marginal utility will eventually decline
What is the PED of a good if it has a -2.2 on the scale
Relatively elastic
Name 3 injections to the circular flow of income
Government expenditure, investment, exports
Define price ceiling
A price that is below the equilibrium price and suppliers cannot charge above it
expalin an assumption underlying the law of diminishing marginal utility
no medical goods
addictive goods
miniumum amount
homogenous
time
income
What score PED would a good have if the demand was relatively in elastic ?
0 to -1
How do you calculate GDP
C+I+G+(X-M)
Define price floor
A price that is above the equilibrium price and suppliers are guaranteed to get.
how do you calculate marginal untility what’s the formula
change in total utility/change in quantity
Explain YED
Percentage change in QD in relation to a percentage change in income
Define the hidden economy
Unrecorded economic activity that’s not accounted in the National income statistics
Give two appropriate examples of a price floor/ceiling
Examples, farming products, rent controls, minimum wage, etc
What is the law of equi-marginal returns
The ratio of marginal utility to price is the same for all goods consumed.
What is the formula for elasticity
Take the correct answer
What is the multiplier
how much an injection will multiply to increase National income