every micro book defenition Flashcards Preview

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Flashcards in every micro book defenition Deck (25)
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1
Q

abnormal profit

A

profit over and above normal profit aka supernormal profit

2
Q

absolute poverty

A

a condition characterised by severe deprivation of basic human needs. it depends on income and access to services

3
Q

adverse selection

A

a situation in which people who buy insurance often have a better idea of the risks they fave than the sellers of insurance do, people who face large risks are more likely to buy insurance

4
Q

allocative efficiency

A

occurs when it is impossible to to improve overall economic welfare by reallocating resources between markets in the whole economy p=mc in every market

5
Q

altruism

A

concern for the welfare of others

6
Q

anchoring

A

cognitive bias describing the human tendency when making decisions to rely too heavily on the first piece of information offered

7
Q

artificial barriers

A

barriers erected by firms themselves such as high levels of advertising expenditure or predatory pricing

8
Q

asymmetric information

A

when one party to a market transaction possesses less information relevant to the exchange than the other

9
Q

automation

A

automatic control where machines operate other machines

10
Q

availability bias

A

occurs when individuals make judgements about the likelihood of future events based on how easy it is to recall similar events

11
Q

average cost of labour

A

total wage cost divided by total workers

12
Q

average fixed costs

A

total cost of employing fixed factors of production to produce a particular level of output divided by the size of the output

13
Q

average revenue

A

revenue/output

14
Q

average returns of labour

A

total output / total number of workers

15
Q

average total cost

A

total cost of producing a particular level of output divided by the size of the output

16
Q

average variable cost

A

total cost of employing the variable factors of production to produce a particular level of output divided by the size of the output

17
Q

behavioural economics

A

a method of economic analysis that applies physiological analysis and insights to explain how individuals make choices and decisions

18
Q

bounded rationality

A

when making decisions an individuals rationality is limited by the information they have the limitations of their minds and the amount of decision making time they have

19
Q

bounded self control

A

limited self control in which individuals lack the self control to act in what they see as their self interests

20
Q

cartel

A

a collusive agreement by by firms to usually to fix prices sometimes there is also an agreement to restrict output and deter entry of new firms

21
Q

choice architecture

A

a framework setting out different ways in which choices can be presented to consumers and the impact of that presentation on consumer decision making

22
Q

cognitive bias

A

a mistake in reasoning or in some other mental thought process occurring as a result of, for example, using rules of thumb. or holding on to beliefs or preferences despite evidence

23
Q

collective bias

A

a process by which wage rates and other conditions of work are negotiated and agreed upon by a union or unions with an employer or employers

24
Q

competition and markets authority

A

government agency responsible for advising on and implementing uk competition policy

25
Q

competition policy

A

part of