Some micro definitions needs polishing Watch

Sameerio
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Definitions are the same in every examboard, right?

Command Economy: Economic system where in which decisions about production and consumption are made by a planning authority, usually the govt

External benefits: Positive spill over effects arising from an economic transaction

External Cost: Negative spillover effects arising from an economic transaction

Free market economy: Economic system where resources are allocated by the price mechanism

Free rider problem: When a person consumes a good without paying for it

Imperfect market information: Consumers lacking knowledge to make rational choices

Indirect tax: Tax on expenditure

Mixed economy: Where resources are partly allocated by the price mechanism and partly by the govt

Normative statement: Value judgement that can't be test as true or false

Opportunity cost: Value of the next best alternative forgone

Positive statement: Factual statement that can be tested as true or false

Private benefit: Benefit of an economic activity to a consumer or firm

Private cost: Cost of an economic activity to a consumer or firm

Production possibility frontier: Maximum possible combinations of 2 goods/services an economy can achieve when all resources are fully employed

Renewable resources: Resources that regenerate through natural processes

Scarcity: Infinite wants and needs but finite resources to satisfy them

Specialization: Labour allocate all their time to produce a good or service

Sustainable resource: Resource that are exploited in such a way that it will never run out

Tradeable Pollution Permits: Permits that allow firms to pollute
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mapotts53
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Yes, they are. There are more than this for Unit 1, eg all of the elasticities.
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Sameerio
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(Original post by mapotts53)
Yes, they are. There are more than this for Unit 1, eg all of the elasticities.
Yea, I got it all in my head.

I just wanted to check these definitions to see if they are correct
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3121
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For external costs I'd say "costs incurred to third parties and society which is not accounted for by the price mechanism from a private market transaction"
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Sameerio
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(Original post by zayn008)
For external costs I'd say "costs incurred to third parties and society which is not accounted for by the price mechanism from a private market transaction"
I hope I can remember that
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