Definition | Answer | % Correct |
---|---|---|
A feature of a good or service whereby if an individual pays for that good or service, it is possible to prevent others from having access to that good or service. | Excludability | 75%
|
Someone who benefits from a good or service without paying for it. | Free-rider | 75%
|
Occurs when a market economy does not achieve an efficient allocation of resources. | Market Failure | 75%
|
Goods that are at least non-excludable and non-rivalry, and may be non-rejectable. | Public Goods | 75%
|
A feature of a good or service whereby any individual can choose not to consume that good. | Rejectability | 75%
|
A feature of a good or service wherby if a person consumes that good or service, the quantity available diminshes and so it is not available for others to consume. | Rivalry | 75%
|
Describes a good that is overproduced in a pure market economy. | Demerit Goods | 50%
|
The effects of economic activity on third parties, who are not involved and have no say in the economic activity that has taken place. | Externalities | 50%
|
Occurs when government intervention in the economy leads to a net loss in economic welfare and a misallocation of resources. | Government Failure | 50%
|
Describes government actions that are designed to affect economic activity economic activity and the allocation of resources. | Government Intervention | 50%
|
When a buyer or seller lacks the information needed to make the best choice in a transaction. | Imperfect Information | 50%
|
Describes a good that is underproduced in a pure market economy. | Merit Goods | 50%
|
Describes the problems experienced by third parties not involved in an economic activity. These problems can be passed on due to either the consumption or production of a commodity by other members of society. | Negative Externalities | 50%
|
A feature of a good or service whereby if that good or service is provided, it is impossible to prevent others from having access to the benefits of that good or service. | Non-excludability | 50%
|
A feature of a good or service whereby if that good or service is provided, an individual must accept it, even if they would chose not to consume that good or service. | Non-rejectability | 50%
|
A feature of a good or service whereby if a person consumes that good or service, it does not reduce the quantity available for others to consume. | Non-rivalry | 50%
|
Describes the benefits that accrue to third parties not involved in an economic activity. These benefits can be passed on due to either the consumption or production of a commodity by other members of society. | Positive Externalities | 50%
|
Goods or services that possess the three features of excludability, rejectability and rivlary. | Private Goods | 50%
|
A tax that takes a higher proportion of taxpayers' incomes increase. | Progressive Tax | 50%
|
A tax and takes the same proportion of taxpayers' incomes, regardless of their income level. | Proportional Tax | 50%
|
Goods that are partly excludable or partly rivalrous. | Quasi-public Goods | 50%
|
A tax that takes a lower proportion proportion of taxpayers' incomes as their incomes increase. | Regressive Tax | 50%
|
The full benefits to society of an economic activity, taking into consideration both private benefits and external benefits. | Social Benefits | 50%
|
The full costs to society of an economic activity, taking into consideration both private costs and external costs. | Social Costs | 50%
|
When either the seller or the buyer has more information than the other party in a transaction. | Asymmetric Information | 25%
|
Taxes levied on income or wealth such as income tax. | Direct Taxation | 25%
|
The value of positive externalities arising from the production and consumption of a particular good. | External Benefits | 25%
|
The value of negative externalities arising from the production and consumption of a particular good. | External Costs | 25%
|
Describes spending by the government on the provision of goods and services and spending on cash benefits. | Government Expenditure | 25%
|
Paid on spending by firms, households and other organisations such as VAT. | Indirect Taxation | 25%
|
Occurs when an economy fails to produce goods at the lowest average total costs and/or fails to achieve the goal of providing those goods to the consumers to whom they provide. | Misallocation of Resources | 25%
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Occurs when a market exists but where the level of production is too low or too high. | Partial Market Failure | 25%
|
The financial benefits to an individual or firm of an economic transaction undertaken by that individual or firm. | Private Benefits | 25%
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The financial costs to an individual or firm of an economic transaction undertaken by that individual or firm. | Private Costs | 25%
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A payment to a producer in order to encourage greater production of a good. | Subsidies | 25%
|
Occurs when a good or service is not supplied at all. | Complete Market Failure | 0%
|
Refers to the way in which low prices act as an incentive for consumers to buy more of a product in order to increase their satisfaction, while high prices act as an incentive for suppliers to supply more in order to increase profit. | Incentive Function of Prices | 0%
|
Occurs when the actions of participants in economic decisions, such as government, producers and consumers, are not the actions that were expected. | Law of Unintended Consequences | 0%
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The adverse consequences to outsiders/third parties arising from the purchase or use of a good or service. | Negative Externalities in Consumption | 0%
|
The adverse consequences to outsiders/third parties arising from the manufacturing or provision of a good or service. | Negative Externalities in Production | 0%
|
The benefits to outsiders/third parties arising from the purchase or use of a good or service. | Positive Externalities in Consumption | 0%
|
Benefits to outsiders/third parties arising from the manufacturing or provision of a good or service. | Positive Externalities in Production | 0%
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Exist when government takes action to affect directly the price paid for a good. | Price Controls | 0%
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Arises because it is not possible to satisfy the unlimited wants of consumers with the scarce resources available. Price acts as a rationing device, as only consumers prepared to pay the market price are able to purchase. If a good becomes scarce, its price will rise, discouraging buyers and so preserving stocks. | Rationing Function of Prices | 0%
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Refers to the importance of price in helping buyers and sellers make decisions about whether it is worthwile to buy or sell a product. | Signalling Function of Prices | 0%
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When both the seller and the buyer are well informed about the goods and services and prices in the market. | Symmetric Information | 0%
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