Shared Flashcard Set

Details

A-level AQA unit 1
Markets and market failure
13
Economics
11th Grade
03/17/2015

Additional Economics Flashcards

 


 

Cards

Term
TRADE OFF
Definition
A exchange of one thing for more of another, for example buying less apples so you can buy more oranges.
Term
FREE GOODS
Definition
These goods aren/t scare so they aren't brought and sold at a price because no cost of production is involved.
Term
ECONOMIC GOODS
Definition
Economic goods are goods which because of their scarcity and cost of production you have to pay a price to obtain.
Term
POSITIVE AND NORMATIVE STATEMENTS
Definition
- Normative statements involve a value judgement and opinion.
- Positive statements can be scientifically proven and must have evidence
Term
WHAT IS A MARKET ?
Definition
A market is where there is a meeting of buyers and sellers for the purpose of exchanging goods and services. Firms usually sell and household consume.
Term
WHAT IS A DEMAND CURVE ?
Definition
A demand curve shows the quantities of a good that households and consumers plan to purchase at different prices.
Term
WHAT CAUSES THE DEMAND CURVE TO SHIFT ?
Definition
A change in any factors but the price will cause a shift in the demand curve, a change in price will cause a shift along the curve. Such as:
- Income
- Taxes
- Prices of substitute goods
Term
SUBSTITUTE GOODS
Definition
These are goods that are in competing demand such as Playstation and Xbox.
Term
EQUILIBRIUM PRICE
Definition
When the supply and demand curves meet and there is no excess supply or any excess demand.
Term
COMPLEMENTARY GOODS
Definition
Goods that are joint in demand, such as Bread and Butter.
Term
WHAT IS THE SUPPLY CURVE ?
Definition
The supply curve shows how much firms or corporations plan to supply at a given price.
Term
HOW TO SHIFT THE SUPPLY CURVE ?
Definition
The supply curve shIfts if the conditions of supply change. Examples of these conditions of supply:
- Cost of production
- Indirect taxes
- Subsides
Term
PRICE ELASTICITY OF DEMAND
(PED)
Definition
PED shows the responsiveness of quantity demanded of a good or service to a change in its price.
PED = PROPORTIONATE CHANGE IN QUANTITY DEMANDED/ PROPTIONATE CHANGE IN PRICE
Supporting users have an ad free experience!