A level Microeconomics key terms

The responsiveness of quantity demanded of good Y to a change in price of good X

Typically goods that are provided by the government

Set tax per unit

Once provided, people cannot reject it

Eliminates excess within a market as it naturally moves towards the equilibrium price

The cost of the next best alternative forgone

The demand for a factor of production used to produce a good or service

The quantity that consumers are willing and able to buy at a given price in a given amount of time

A percentage tax

When people have inaccurate or incomplete data and so make wrong choices and decisions

The price at which supply = demand

An inefficeint distribution of goods and services in the free market

The utlity decreases the more we use it

One person using it does not reduce the amount avilable for others

The difference between the price you are willing to pay for a product and the price you paid for it

Shows the maximum amount that can be produced of two given goods

A fall in price increases the real purchasing power of consumers

The quantity demand for this good increases (Less than proportionally) when income increases

Total satisfaction from a given level of consumption

When markets don't provide a good or service at all

Goods or services that don't use up any factor inputs when supplied

Goods that improve efficiency and productive potential of an economy in the long run

When changes in price encourage buyers and sellers to change the quantity they buy and sell

Quantity demanded for this good decreases when income increases

Tax on all types of income. Paid directly by the payee

Objective statements that can be tested, amended or rejected by referring to available evidence

The change in satisfaction from consuming an extra unit

The difference between the price you are willing to sell at and the price you actually sell at

The responsiveness of supply to a change in price

Government grants firms money in order to increase supply or lower price

Resources that are replaceable over time

Goods that participate to more than one cycle of consumption

Resources that are finite in supply

Exists where goods have more than one use

Subjective statements, they carry valid judgements about what ought to be

Tax on consumption, paid by the final consumer

The inputs available to supply goods and services in an economy

The responsiveness of quantity demanded to a change in price

The cost of borrowing and reward for saving

Consumers and firms react to price change, If prices rise, firms should produce more. If prices fall, consumers should consume more

The cost or impact of a negative externality on the 3rd party

The responsiveness of quantity demanded to a change in income

Once provided, it's impossible to stop someone from using it without paying

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

When an economy focuses all of its energy on one industry

Effects that occur on a third party outside of a transaction