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Economic 2 Flashcards

1
Q

Deregulation

A

The process of removing government controls from free markets

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2
Q

Derived demand

A

When the demand for one good or service comes from the demand for another good or service. The demand for cars stimulates the demand for steel therefore the demand for steel is derived demand

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3
Q

Discouraged workers

A

Workers who leave the labour market because despite numerous attempts they are unable to find a job

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4
Q

Discretionary fiscal policy

A

The deliberate manipulation of government spending in taxation to influence the economy

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5
Q

Diseconomies of scale

A

Where any increase in the scale of production leads to increase is an average total cost for firms

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6
Q

Disequilibrium

A

The situation within the market where supply does not equal demand

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7
Q

Disposable income

A

Income available to households after the payment of income tax and national insurance contribution

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8
Q

Division of labour

A

Breaking the production process down into a sequence of tasks with workers assigned to particular tasks

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9
Q

Economic goods

A

Goods that are scarce and therefore have an opportunity cost

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10
Q

Economic growth

A

The capacity of the economy to produce more goods and services over time

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11
Q

Economic indicators

A

Economic statistics that provide information about the expansions and contractions of business cycles

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12
Q

Economic models

A

These are used to show the essential characteristics of complicated economic conditions in order to analyse them and predict the result of changes of variables

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13
Q

Economic welfare

A

Refers to the benefit all satisfaction and individual or society gets from the allocation of resources. we can attempt to measure the welfare of individuals but we really want to understand the overall effects on society as a whole. this will include how well off people feel, how much they have but also might consider other factors such as their environment and standard of living their physical well-being although this is hard to define

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14
Q

Economies of scale

A

Where an increase in the scale of production leads to reduction in average total cost for firms

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15
Q

Effective demand

A

Demand supported by the ability to pay for a good or service

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16
Q

Employment

A

Where labour is actively engaged in a productive activity usually in exchange for payments such as wages

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17
Q

Equilibrium

A

The price at which demand is equal to supply and there is no tendency for change

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18
Q

Ex ante

A

A term that refers to future events

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19
Q

Ex post

A

A term that refers to after the event

20
Q

Excess demand

A

When demand is greater than supply at a given price

21
Q

Excess supply

A

When supply at a particular price is greater than demand this should signal to producers to lower prices

22
Q

Exchange rate

A

The price at which one currency e.g. the pound exchanges for another e.g. the US dollar

23
Q

Expansionary fiscal policy

A

Increasing levels of government spending relative to text revenue appropriate to stimulating I can get them on during a downturn in economic activity

24
Q

Exporting

A

The sale of goods or services to a foreign country generates income for the home country

25
Q

Exports

A

Goods or services sold abroad

26
Q

Extension in supply

A

When there is an increase in supply because the market price has risen

27
Q

Extensions in demand

A

Increases in demand caused by changes (falls)in price

28
Q

Externalities

A

Course open to fit set spill over to 3rd parties external to a market transaction

29
Q

Factor market

A

The market for the factors of production that make other goods and services such as labour or raw materials

30
Q

Failure of information

A

Or information failure where economic agents do not properly perceive the benefits or disadvantages of the transaction

31
Q

Fiscal policy

A

The policy of the government regarding taxation and government expenditure

32
Q

Fixed costs

A

Costs of production that do not vary as output changes

33
Q

Flow

A

Measured over a specified period of time

34
Q

Free goods

A

Goods that have no opportunity cost, for example air

35
Q

Free market economy

A

One in which there is very limited government involvement in providing goods and services. Its main role is to ensure that the rules of the market are fair so that for example, people cannot steal each other’s property

36
Q

Free rider problem

A

Where some consumers benefit from other consumers purchasing a good, particularly in the case of public goods

37
Q

Fictional search unemployment

A

People between jobs

38
Q

Geographical immobility

A

Where workers find it difficult to move to wear employment opportunities may be due to family ties and differences in housing costs

39
Q

Globalisation

A

The ability to produce goods anywhere in the world and sell them in any country

40
Q

Goods and services

A

Goods are considered to be tangible products that we can touch such as CDs or a car. These are distinct from services which are not tangible such as a trip to the cinema or train journey. We do not buy the train or the cinema but do receive intangible benefits from watching the film or travelling

41
Q

Government failure

A

When government intervention to correct market failure does not improve the allocation of resources or leads to a worsening of the situation. The costs of government intervention may therefore exceed the benefits

42
Q

Gross domestic product

A

The total value of goods and services produced in the country

43
Q

Demerit good

A

A good that would be over consumed in a free market as it brings less overall benefit to consumers than they realise

44
Q

Market demand

A

Total demand in the market for a good sum of all individuals demand at each given price

45
Q

Market failure

A

Where the market fails to produce work of consumers require at the lowest possible cost

46
Q

Indices

A

Have no idea what they are

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