Description | Term | % Correct |
---|---|---|
A misallocation of resources arising from government intervention | Government Failure | 100%
|
The way in which the benefit of receiving a subsidy is divided between consumers and producers | Incidence of a Subsidy | 100%
|
Where a person is willing to take more risks because someone else must bear the costs | Moral Hazard | 100%
|
Where the social costs of production and/or consumption exceed the private costs as a result of no appropriate compensation being paid | Negative Externality | 100%
|
A tax that falls uniformly upon all consumers thus taking a larger percentage of income from low-income earners than from high-income earners | Regressive Tax | 100%
|
A good or service that a consumer can decide against using | Rejectable | 100%
|
The total of both private cost and external cost | Social Cost | 100%
|
The difference in area between the pre-tax surplus and the post-tax surplus on a demand and supply curve | Deadweight Welfare Loss | 50%
|
An indirect tax or subsidy levied at a percentage of the pre-tax or pre-subsidy price causing a non-parallel shift in the supply curve | Ad Valorem | 0%
|
Where a person is more likely to selectively engage in trades that benefit them the most to others' disadvantage | Adverse Selection | 0%
|
Where resources are distributed in a way that maximises consumer satisfaction, and where the price of a product is equal to the marginal cost of producing it | Allocative Efficiency | 0%
|
Where one party to a transaction has more information than the other | Asymmetric Information | 0%
|
The branch of economics that combines a psychological approach with traditional models to understand decision making and its effects on economic participants | Behavioural Economics | 0%
|
The term for the amount of tax absorbed by both consumers and producers | Burden | 0%
|
The sum of consumer and producer surplus | Community Surplus | 0%
|
Where a market does not supply any of a product at all | Complete Market Failure | 0%
|
Where the implementation of one government policy will adversely affect another | Conflicting Policy Objectives | 0%
|
A positive or negative externality that is caused by the demand side of the market | Consumption Externality | 0%
|
The loss in producer and consumer surplus due to an inefficient level of production | Deadweight Loss | 0%
|
A tax charged directly to an individual based on a component of income | Direct Tax | 0%
|
Composed of both productive efficiency and allocative efficiency | Economic Efficiency | 0%
|
The area of the consumer and producer surpluses combined plus any tax revenue on a demand and supply curve | Economic Welfare | 0%
|
Where the costs of implementing, and/or regulating a policy are too high | Excessive Administation Costs | 0%
|
A sudden event effecting an economy that is outside of a government's control | Exogenous Shock | 0%
|
A benefit enjoyed by a third party | External benefit | 0%
|
The cost incurred by an individual or firm as a result of its activities but which is borne by a third party | External Cost | 0%
|
Where consumption of a product cannot be made dependent on payment thus giving firms little or no incentive to produce it | Free Rider Problem | 0%
|
Where a person lacks crucial information to make rational decisions | Imperfect Information | 0%
|
The way in which the burden of paying a sales tax is divided between buyers and sellers | Incidence of a Tax | 0%
|
A tax levied on expenditure on goods or services such as VAT | Indirect Tax | 0%
|
Where a government policy is implemented without full knowledge of, or with incorrect information on a certain factor | Information Gaps | 0%
|
Attempting to deal with an externality by absorbing its external costs and benefits into the price system | Internalising an Externality | 0%
|
That the actions of consumers, producers, and governments will always have effects that are unintended or unanticipated | Law of Unintended Consequences | 0%
|
The reforms of the EU's Common Agricultural Policy in 1992 | MacSharry Reforms | 0%
|
What should a subsidy equal when there are external benefits? | Marginal External Benefit | 0%
|
What should a tax equal when there are external costs? | Marginal External Cost | 0%
|
Where a market does not achieve an efficient allocation of scarce resources | Market Failure | 0%
|
A price above which producers cannot charge for their product | Maximum Price | 0%
|
A price below which consumers cannot pay for a product | Minimum Price | 0%
|
Where resources are not put to use efficiently | Misallocation of Resources | 0%
|
Where people may support something as long as it does not affect and/or inconvenience them | NIMBY Syndrome | 0%
|
A good or service that a consumer cannot decide against using due to collective supply | Non-Rejectable | 0%
|
Where a functional market produces at the wrong quantity or price | Partial Market Failure | 0%
|
Where a government designs policies for their own political benefit | Political Self Interest | 0%
|
Where the social benefits of production and/or consumption exceed the private benefits | Positive Externality | 0%
|
Where governments set maximum or minimum prices | Price Controls | 0%
|
A benefit enjoyed by an individual or firm | Private Benefit | 0%
|
A cost incurred and borne by an individual or firm as a result of its activities which is reflected in market price | Private Cost | 0%
|
A positive or negative externality that is caused by the supply side of the market | Production Externality | 0%
|
Where there is an optimal allocation of inputs producing maximum output for minimum cost | Productive Efficiency | 0%
|
A tax that takes a larger percentage from high-income earners than from low-income earners | Progressive Tax | 0%
|
That which confers legal ownership of a good and legal control over how it is used | Property Rights | 0%
|
A product which has negative effects on people and their communities | Public Bad | 0%
|
A good or service that is semi non-rivalrous and semi non-excludable, like wifi, the signal of which may become slower as more people use it | Quasi-Public Good | 0%
|
Where a government focuses on quick fixes to problems | Short-Termism | 0%
|
The total of both private benefit and external benefit | Social Benefit | 0%
|
An indirect tax or subsidy levied at the same amount regardless of price causing a parallel shift in the supply curve | Specific | 0%
|
A payment made by the government to a supplier of products that are considered to be essential or which provide beneficial effects | Subsidy | 0%
|
Where both sides of the market have access to a similar amount of information | Symmetric Information | 0%
|
Who shoulders the greater tax burden when demand is relatively inelastic? | The Consumer | 0%
|
Who benefits more from a subsidy when demand is relatively inelastic? | The Consumer | 0%
|
Who shoulders the greater tax burden when supply is relatively inelastic? | The Producer | 0%
|
Where circumstances may change between the recognition of a problem and the designing, and implementation of a policy | Time Lags | 0%
|
Permits allowing a firm to emit a certain amount of pollution which can be traded between firms | Tradable Pollution Permits | 0%
|
Where social costs exceed social benefits | welfare loss | 0%
|
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