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24 Cards in this Set
- Front
- Back
Ad valorem tax? |
An indirect tax based on a percentage of the sales price of a good or service |
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Allocative efficiency? |
Price = marginal cost |
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Asking price? |
The price at which a security, commodity or currency is offered for sale on the market- generally the lowest price the seller will accept |
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Asymmetric information? |
When somebody knows more than somebody else in the market. |
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Automation? |
Production technique that uses capital machinery/ technology to replace or enhance human labour and bring about a rise in productivity |
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Automation? |
Production technique that uses capital machinery/ technology to replace or enhance human labour and bring about a rise in productivity |
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Buyers market |
A market that favours buyers because supply is plentiful relative to demand and therefor e prices are low |
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By product |
Something produced as a consequence of producing another good or service |
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Capacity utilisation |
The extent to which a business is making full use of a existing factor resources |
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Capital goods |
Factories, machinery and equipment are not useful not in themselves but for the goods and services they ca help produce in the future |
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Collusion plans |
It is any explicit or implicit agreement between suppliers in a market to avoid competition. |
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Command economy |
Economic system where resources are allocated by the government |
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Common resources |
Goods or services that have characteristics of rivalry in consumption and no excludability |
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Complements |
Two complements are said to be in joint demand |
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Composite demand |
Where goods or services have more than one use so that an increase in the demand for one product leads to a fall in supply for another |
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Average cost? |
Total cost divided by the number of units of the commodity produced |
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Average fixed cost? |
Average fixed costs are total fixed costs divided by the number of units of output, that is, fixed cost per unit of output |
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Barriers to entry? |
Factors making it expensive for new firms to enter in a market |
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Barter |
Exchanging good or service for another without using money |
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Behavioural economics |
Branch of economics that studies the impact of psychological and social factors on economic decision making |
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Black market? |
An illegal market in which the market price is higher than a legally imposed price ceiling. |
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Brand |
Distinctive product created by the use of the logo, symbol, name, design or packaging |
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Buffer stock? |
They seek to stabilise markets price of agricultural products by buying up supplies of the product when harvests are plentiful and selling stocks of the product onto the market when supplies are low |
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Bulk buying |
The purchase by firms to buy stock in large quantities of a product or raw material which often lowers price |