supply and demand
the interaction of supply and demand
what determines price in a market?
anchoring
the use of irrelevant information to make decisions
sheep grazing on common land in the UK
what is the tragedy of the commons based on?
the % change in demand is greater than the % change in price
Describe a price elastic product
The Grandfather of Economics
What is Adam Smith known as?
maximum utility
what do consumers look to achieve when they think about what to spend their money on?
beef is described as 80% lean rather than 20% fat
An example of framing is?
non-excludable and rivalrous
what are the characteristics of a common access resource?
YED is less than 0
What is the YED for an inferior good?
I could have been reviewing Maths instead
Give an example of the opportunity cost of playing this game
an inferior good
what do economists call a good where the demand decreases as income increases
People do not have an unlimited capacity to process information
What is meant by bounded rationality?
not perfect in terms of non-excludable and non-rivalry
How would you describe a quasi public good?
The supply curve goes through the origin
Describe the position of the supply curve when PES = 1
Scarcity
What is the basic economic problem?
the demand for a complement will decrease
if the price of a complement increases?
Providing people with a default choice
Give an example of choice architecture
the polluter pays principle
what principle is a Pigouvian tax based on?
is a definition of income elasticity of demand
the responsive of demand to a change in income is a definition of what?
The factors of production
Collective what are land, labour, capital and enterprise known as?
the utility received that the consumer does not pay for
what is consumer surplus?
satisficing behaviour
The name given to firms who do not try to maximise anything
the MSC is to the left of the MPC
Describe where the MSC is in relation to the MPC when there is a negative externality of production
price has changed by 10%
How much has price changed for a good where the PED = 2 and demand changes by 20%
Resources are not equally productive
Why is the PPC concave?