Statistics for A level Microeconomics key terms

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General Stats

This quiz has been taken 86 times
The average score is 12 of 46

Answer Stats

Hint	Answer	% Correct
The price at which supply = demand	Equilibrium price	57%
The quantity demand for this good increases (Less than proportionally) when income increases	Normal	39%
The cost of the next best alternative forgone	Opportunity Cost	39%
The difference between the price you are willing to pay for a product and the price you paid for it	Consumer Surplus	35%
Subjective statements, they carry valid judgements about what ought to be	Normative Statements	33%
Objective statements that can be tested, amended or rejected by referring to available evidence	Positive Statements	32%
The difference between the price you are willing to sell at and the price you actually sell at	Producer Surplus	29%
The cost of borrowing and reward for saving	Interest rate	26%
The quantity that consumers are willing and able to buy at a given price in a given amount of time	Demand	25%
Quantity demanded for this good decreases when income increases	Inferior	25%
The change in satisfaction from consuming an extra unit	Marginal Utility	25%
Shows the maximum amount that can be produced of two given goods	PPF	25%
Typically goods that are provided by the government	Public goods	25%
Tax on all types of income. Paid directly by the payee	Direct Tax	24%
The cost or impact of a negative externality on the 3rd party	Social cost	24%
Effects that occur on a third party outside of a transaction	Externalities	23%
The responsiveness of quantity demanded to a change in price	Price elasticity of demand	23%
A compulsory contribution to state revenue	Tax	22%
Tax on consumption, paid by the final consumer	Indirect Tax	21%
Resources that are replaceable over time	Renewable resources	21%
The quantity of a good or service that producers are willing and able to offer for sale at each possible price in given time periods	Supply	21%
Goods that improve efficiency and productive potential of an economy in the long run	Capital goods	17%
The inputs available to supply goods and services in an economy	Factors of Production	17%
An inefficeint distribution of goods and services in the free market	Market Failure	17%
The responsiveness of supply to a change in price	Price Elasticity of Supply	17%
Government grants firms money in order to increase supply or lower price	Subsidies	17%
Once provided, it's impossible to stop someone from using it without paying	Non-excludable	14%
Set tax per unit	Specific Tax	14%
The responsiveness of quantity demanded to a change in income	Income elasticity of demand	13%
Resources that are finite in supply	Non renewable resources	13%
Total satisfaction from a given level of consumption	Total Utility	10%
When changes in price encourage buyers and sellers to change the quantity they buy and sell	Incentive	9%
When people have inaccurate or incomplete data and so make wrong choices and decisions	Information Failure	9%
Eliminates excess within a market as it naturally moves towards the equilibrium price	Invisible hand theory	9%
One person using it does not reduce the amount avilable for others	Non-rivalry	9%
When changes in price lead to more or less being produced, so increasing or limiting the quantity demanded by buyers	Rationing	9%
Consumers and firms react to price change, If prices rise, firms should produce more. If prices fall, consumers should consume more	Signalling	9%
A percentage tax	Ad Valorem Tax	8%
The responsiveness of quantity demanded of good Y to a change in price of good X	Cross price elasticity of demand	8%
When markets don't provide a good or service at all	Complete market failure	5%
Goods that participate to more than one cycle of consumption	Durables	5%
Goods or services that don't use up any factor inputs when supplied	Free goods	5%
When an economy focuses all of its energy on one industry	Specialisation	5%
Exists where goods have more than one use	Composite demand	4%
The demand for a factor of production used to produce a good or service	Derived demand	4%
The utlity decreases the more we use it	Diminishing Returns	4%
A fall in price increases the real purchasing power of consumers	Income effect	4%
Once provided, people cannot reject it	Non-rejectable	4%