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8 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Four functions of money |
- measure of value - medium of exchange - store of value - deferred payment |
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Positive economics |
Objective statements which come from facts, don't have to be right but have to be able to be tested and verified. |
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Normative economics |
Subjective statements that come from opinions, don't have to be verifiable, can't be classed as right or wrong. |
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Alternative views of consumer behaviour, why consumers may not behave rationally |
- habitual behaviour - consumer weakness at computation (computational weakness) - other people's influence e.g. reviews or peer pressure |
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Change in price |
Movement along |
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Shifts in demand |
Distribution of Income Income Population Substitute goods Interest rates (cost of credit, indirect taxes) Complement goods Advertising (change in preferences) Publicity (change in preferences) Seasonal |
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Factors that influence elasticities |
- Substitutes, availability of alternatives. - Proportion of income, (spending) - Luxuries/necessities, - Addictive - Time period, short run vs long run |
SPLAT |
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3 functions of the Price Mechanism |
- Rationing - Incentive - Signalling |
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