Some micro definitions needs polishing
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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
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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(Original post by mapotts53)
Yes, they are. There are more than this for Unit 1, eg all of the elasticities.
Yes, they are. There are more than this for Unit 1, eg all of the elasticities.
I just wanted to check these definitions to see if they are correct
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#4
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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(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"
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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