Allocative efficiency Study guides, Revision notes & Summaries

Scarcity correct answers Although your wants are unlimited, the resources available to fulfill those wants are limited Economics correct answers Study of the choices consumers, business mangers and government officials make to attain their goals, given their scarce resources Economics Model correct answers A simplified description of reality, used to make predictions that can be tested with data 3 Main Ideas correct answers 1. People are rational 2. People respond to economic incentive...

Principles of Microeconomics Exam Questions And Answers (Verified And Updated) Scarcity - answera situation in which unlimited wants exceed the limited resources available to fulfill those wants shortage - answera situation in which the quantity demanded is greater than the quantity supplied microeconomics - answerthe study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices macroeconomics - answerthe study o...

PCE 9 2023 Exam Questions with Complete Solutions two types of market models that closely approximate many markets in the real world are - ANSWER monopolistic competition and oligopoly a(n) _oligopoly_ is a market dominated by a few large producers of a homogeneous or differentiated product - ANSWER oligopoly when plant and equipment are underutilized because firms are producing less than the minimum- ATC output, this is known as having _productive inefficiency_ _exce...

Economics - Answer-social science that studies the choices that individuals, businesses, governments, and societies make as they cope with scarcity, incentives, and reconcile those choices Macroeconomics - Answer-Study of the performance of the national and global economies E.x. Why is the unemployment rate in the U.S. so high? Microeconomics - Answer-Study of choices that individuals and businesses make, the way those choices interact in markets, and the influence of governments E.x. Why ...

Absolute advantage - ANSWERSWhen a country's output of a product per unit of input is greater than that of any other country. Absolute poverty - ANSWERSWhen a person does not have the income or wealth to fulfil their basic needs. Aggregate Demand (AD) - ANSWERSThe total demand/spending in an economy at a given price level over a given period of time. Made up of consumption, investment, government spending and net external demand. Aggregate Supply (AS) - ANSWERSThe total amount of goods...

Edexcel A-Level Economics A: DefinitionsEdexcel A-Level Economics A: DefinitionsEdexcel A-Level Economics A: Definitions Absolute advantage - ANSWER-When a country's output of a product per unit of input is greater than that of any other country. Absolute poverty - ANSWER-When a person does not have the income or wealth to fulfil their basic needs. Aggregate Demand (AD) - ANSWER-The total demand/spending in an economy at a given price level over a given period of time. Made up of consu...

ECONOMICS Chapter 13 Study Set QUESTION AND CORRECT ANSWER Monopolistic competition means: <a market situation where competition is based entirely on product differentiation and advertising. <a large number of firms producing a standardized or homogeneous product. <many firms producing differentiated products. <a few firms producing a standardized or homogeneous product. many firms producing differentiated products. Monopolistic competition is characterized by a: <...

perfect competition - Answer a market structure in which a large number of firms all produce the same product Perfectly competitive market Characteristics - Answer 1. infinite number of suppler and consumers 2. each firm is a price taker 3. consumers have perfect information 4. producers have perfect information 5. products are homogeneous 6. Firms are profit maximisers 7. no entry barriers Allocative efficiency in perfect competition - Answer it is allocatively efficien b...

Absolute Advantage - ANSWER-The capability to produce more of a given product using less of a given resource than a competing entity Absolute Quota - ANSWER-Strictly limiting the quantity of goods that may enter a country Accounting Profit - ANSWER-Total revenues minus explicit costs, including depreciation Acquisition - ANSWER-When one firm purchases another Ad Valorem Tariffs - ANSWER-Import tax based on a fixed percentage of the assessed commercial value of imported goods Adver...

Factors influencing demand for labour - ANSWERSDemand for final product - if rise in output > increase in productivity Relative productivity of labour to capital - substitution effect £3,000 subsidy for hiring unemployed 18-24 y.o. = half UK's youth minimum wage Factors influencing supply of labour - ANSWERSCost of living Cost of gaining skills UK uni fees capped at £9,250 per year Number of workers UK raises state pension age from 67 to 68 Market failures in labour marke...