definitions Flashcards
(14 cards)
inequality
the unequal distribution of resources
income inequality
the uneven distribution of income among individuals or households within a population
what is wealth
the total value of a person’s assets, including money, property, investments, and other valuable possessions
scarcity
Limited resources in comparison to unlimited wants
Allocative Efficiency
Allocative Efficiency
Productive Efficiency
When output is produced at the minimum average cost
Marginal Cost (MC)
The additional cost of producing one more unit of output
Economies of Scale
Cost advantages from expanding the scale of production
Perfect Competition
A market with many buyers and sellers, homogeneous products, and no barriers to entry
Monopoly
A single seller dominates the market (usually over 25% market share in UK legal terms)
eg. Google
Monopolistic Competition
Many firms selling similar but differentiated products
Oligopoly
A market dominated by a few large firms, often with interdependence and barriers to entry
Wage Determination
The interaction of supply and demand for labour in determining wages
Wealth Inequality
Unequal distribution of assets such as property, shares, and savings.
