Revision For End Of Year 2019 Flashcards
(24 cards)
What are the four different costs of society
Private costs, private benefit, external cost, external benefit
What are the four types of economies
Command economy, Market economy, Traditional economy, Mixed economy
What are the factors of production
Land, labour, capital, enterprise
What are the factors affecting demand
The price of a complementary good, the price of a substitute good, income, population, legislation, advertisement, change in brand confidence, trends
What is a social cost
The cost to society
What are the different types of demand curve
Inelastic, elastic, unitary
What are private costs
The cost to the decision maker alone
What are private benefits
The benefits to the decision maker
What are external benefits
The benefits to anyone but the decision maker
What is allocative efficiency
When an optimum allocation is achieved according to customer preference
What is a PPC
A production possibility curve shows opportunity cost
What is opportunity cost
The cost of choice
What is productivity
Output per worker per hour
What is the economic problem
Unlimited wants limited resources
What is scarcity
Not enough resources to satisfy everyone’s wants
What are social benefits
The overall benefits to society
What are the three different types of banks
Commercial banks, investment banks, central banks
What are the factors affecting price elasticity of demand
Has it got any close subsidies, is it cheap or in small proportion of income, is it addictive, is it a necessity
What is a multinational corporation
A company which trades with many other companies
What is the evaluation of money
Community money (gold, shells), Representative money (notes backed by gold), Fiat money (bank notes), Electronic money (not notes and coins), Non government money (bitcoin)
What are the functions of money
Medium of exchange (if it’s accepted), Measure of value (value measured by money), Store of value (money stored)
What are the characteristics of money
Portability, durability, divisibility, acceptability,
What is a double coincidence of odds
When two people have what each other wants to trade for
Give an example of market failure
Lack of information
