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23 Cards in this Set
- Front
- Back
Average costs |
Cost per unit output - total costs over a period of time divided by quality produced |
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Average review |
Money gained per unit sold |
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Consumption |
The purchase/use of a good our service |
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Cross elasticity of demand |
A measure of how quantity demanded off one good our service changes sure to a change of outside of another good |
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Equilibrium |
A market for a product is in equilibrium when the quality supplied is equal to the quantity demanded |
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Factors of production |
These are for inputs to create what people want: land, Labour, capital and enterprise |
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Free rider problem |
Once a public good is provided it is impossible form excluding them from consuming it, even if they haven't paid for it |
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Government failure |
When governor observation into a market causes a musician of resources |
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Market failure |
This is where the price mechanism fails to allocate resources efficiently |
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Merit good |
A good our service that provides greater social benefits when it is consumed then private benifits |
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Monopoly power |
The ability of a form to be a price marker and influence the price of a particular good in a market |
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Natural monopoly |
An industry where economies of scale are so large that costs can only be efficient for one single provider |
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Opportunity costs |
The benefit that is given up in order to do something else - the cost of the choice what is made |
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Perfect information |
This is where buyers and sellers have fill knowledge if prices, costs, benefits and availability of products |
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Price elasticity of demand |
A measure of how much the demand of a good changes due to a change in price |
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Price elasticity of supply |
How much quantity of a good changes due to a change in price of the good |
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Price mechanism |
When changes in demand or supply of a good leads to changes in its price and quantity bought and sold |
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Producer surplus |
When a producer revived more for a good then they were prepared to accept |
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Specialisation |
When people our countries are doing what they are best or most efficient at |
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Subsidy |
An amount of money paid to a supplier by the government in order to reduce the costs of production and increase supply to then decrease price and increase overall output |
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Tax |
An amount of money paid to the government to increase costs of production and decrease overall supply |
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Total costs |
All costs involved inputs to make the input a form is currently creating |
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Total review |
Total amount of money gained by a firm at a particular output |