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Economics: Topic 5, Year 1 Definitions - Statistics

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  • This quiz has been taken 11 times
  • The average score is 13 of 46
Answer Stats
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
60%
Someone who benefits from a good or service without paying for it. Free-rider
60%
Occurs when a market economy does not achieve an efficient allocation of resources. Market Failure
60%
A tax and takes the same proportion of taxpayers' incomes, regardless of their income level. Proportional Tax
60%
Goods that are at least non-excludable and non-rivalry, and may be non-rejectable. Public Goods
60%
A feature of a good or service whereby any individual can choose not to consume that good. Rejectability
60%
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
60%
Describes a good that is overproduced in a pure market economy. Demerit Goods
40%
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
40%
Occurs when government intervention in the economy leads to a net loss in economic welfare and a misallocation of resources. Government Failure
40%
Describes government actions that are designed to affect economic activity economic activity and the allocation of resources. Government Intervention
40%
When a buyer or seller lacks the information needed to make the best choice in a transaction. Imperfect Information
40%
Describes a good that is underproduced in a pure market economy. Merit Goods
40%
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
40%
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
40%
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
40%
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
40%
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
40%
Goods or services that possess the three features of excludability, rejectability and rivlary. Private Goods
40%
A tax that takes a higher proportion of taxpayers' incomes increase. Progressive Tax
40%
Goods that are partly excludable or partly rivalrous. Quasi-public Goods
40%
A tax that takes a lower proportion proportion of taxpayers' incomes as their incomes increase. Regressive Tax
40%
The full benefits to society of an economic activity, taking into consideration both private benefits and external benefits. Social Benefits
40%
The full costs to society of an economic activity, taking into consideration both private costs and external costs. Social Costs
40%
When either the seller or the buyer has more information than the other party in a transaction. Asymmetric Information
20%
Taxes levied on income or wealth such as income tax. Direct Taxation
20%
The value of positive externalities arising from the production and consumption of a particular good. External Benefits
20%
The value of negative externalities arising from the production and consumption of a particular good. External Costs
20%
Describes spending by the government on the provision of goods and services and spending on cash benefits. Government Expenditure
20%
Paid on spending by firms, households and other organisations such as VAT. Indirect Taxation
20%
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
20%
Occurs when a market exists but where the level of production is too low or too high. Partial Market Failure
20%
The financial benefits to an individual or firm of an economic transaction undertaken by that individual or firm. Private Benefits
20%
The financial costs to an individual or firm of an economic transaction undertaken by that individual or firm. Private Costs
20%
A payment to a producer in order to encourage greater production of a good. Subsidies
20%
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%
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%
Exist when government takes action to affect directly the price paid for a good. Price Controls
0%
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%
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%
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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