lessons 3 Flashcards
what is asymmetric information?
when either consumer or producer has more information
what is framing?
the tendency of people to be influenced by the context in which a choice is presented
what happens when there is a shortage?
not enough supply too much demand
what is corporation tax?
tax on profit
what is the basic economic problem?
wants are unlimited and resources are scarce
what does low taxes encourage and what is a negative result as a result of it?
encourages risk taking so consumers have more to spend but this means less money for the nhs, schools and the elderly
what is PPE?
personal protection equipment
protective clothing, helmets, goggles, or other garments or equipment designed to protect the wearer’s body from injury or infection
what is an incentive?
designed to encourage people and firms towards a particular course of action / decision
what are remunerative incentives?
financial incentives
what are coercive incentive?
laws and stuff
what is total utility?
all of the satisfaction gained
what is marginal utility?
the additional satisfaction from consuming one more. when marginal utility turns negative we expect people to stop as rationality is bounded
what is an economic good?
one which resources are used to produce them
what is a free good?
one which does not require resources
what is an opportunity cost?
the rejected option when making a choice
