MODULE ONE
This type of economics involves testable statements and facts.
What is positive economics?
This market structure has a single seller with no close substitutes.
What is a monopoly?
This is the return to labour in factor markets.
What are wages?
A rightward shift in the supply curve means this happens to the quantity supplied at every price.
What is it increases?
This type of market failure occurs when third parties are affected by market activity.
What is an externality?
The term for differences in wages between individuals or groups doing similar or different jobs.
What are wage differentials?
The law that underpins the inverse relationship between price and quantity demanded.
What is the law of demand?
A government-imposed minimum price leads to this type of surplus.
What is excess supply?
The reward paid to capital is known as this.
What is interest?
This term describes the responsiveness of quantity demanded to a change in price.
What is price elasticity of demand (PED)?
This structure features few sellers and interdependence.
What is oligopoly?
Name two institutional or structural reasons for wage differentials.
What are union membership, minimum wage laws, educational access, segmented labour markets
Give one example each of a non-price determinant of demand and supply.
What are income (demand), technology (supply), etc.?
Name two forms of government intervention used to correct market failure.
What are taxes, subsidies, regulations, price controls, public goods provision, etc.?
Name one cause and one consequence of income inequality.
What are education disparities and poverty traps, for example?