1
The value of something sacrificed when no direct payment is made
What is Implicit costs?
Disposable Income and Population
Determinants of Demand
Demand unresponsive to price changes
What is Inelastic demand?
Land, labour, capital and enterprise
What is Factors of production?
a place where buyers and sellers come into contact with one another
What is a market?
outlines all the possible combinations of two goods and that can be produced in an economy.
What is Production Possibilities frontier (PPF)?
study of the economy as a whole
What is Macro-economics?
Produce a good or service at a lower opportunity cost than other producers
What is Comparative advantage?
Resources are allocated through individual decision making
What is Market economy
Sensitivity of one market variable to another
What is Elasticity?
T he alternatives or other opportunities that have to be foregone to achieve a particular thing
What is Opportunity costs?
as disposable income rises, demand for these goods also rises
What is Normal or superior goods
measures the responsiveness of demand to a change in income
What is Income elasticity of demand?
cost advantages that arise from increases in the size of an organization.
What is Internal economies of scale?
changes in production costs, taxes and subsidies
What is Determinants of Supply?
Economic system :
Private ownership of firms NOT allowed
What is Centrally planned economies?
a rise in the price of one good will lead to a rise in the demand for the other
What is Substitutes?
Negative cross-price elasticity of demand
What is complements joint demand?
measures the responsiveness of supply to a change in price
What is Price elasticity of supply?
More of at least one good can be produced, without sacrificing the production of any other good
What is productively inefficient?
study over choice questions that arise from scarcity
What is economics
Time horizon, Close substitutes, Necessities
What is Determinants of Elasticity?
a state of balance or the position towards which something will naturally move.
What is Equilibrium
Government-imposed minimum price in a market
What is Price floor?
Quantity demanded changes by the same percentage as the price
What is Unit elastic demand?