Economics Key terms (WIP)

Economics is the study of human behaviour under __________.

scarcity

__________ describes any situation in which factors of production are finite, whereas wants are infinite.

Scarcity

Ceteris Paribus is a Latin expression meaning __________.

other things equal

__________ are those who demand goods and services.

Consumers

__________ are those who supply goods and services.

Producers

The __________ is the price at which there is no tendency to change because planned purchases are equal to planned sales.

equilibrium price

The _________ effect refers to consumers being able to purchase more as prices fall, even with a fixed income.

income

The __________ effect occurs when the price of one good rises, making substitute goods more attractive to consumers.

substitution

GDP stands for __________.

Gross Domestic Product

A __________ is defined as two consecutive quarters of negative GDP growth.

recession

The __________ is the foregone value of the next best alternative.

opportunity cost

The __________ of demand curve shifts include Producers, Advertising, Substitution, Income levels, Fashions/Trends, Interest rates, Complementary goods, Speculation.

PASIFICS

The __________ is the mismatch of worker supply and demand occurring in industries like tourism and farming.

seasonal unemployment

The __________ is the proportion of the working-age population that is actively seeking work but not working.

unemployment

Positive statements can be tested to be __________ or __________.

true; false

The __________ mechanism functions include signalling, incentive, and rationing.

price

____________ can lead to an economic slowdown and discourages consumer spending.

Deflation

Inflation is measured by both __________ and __________.

CPI; RPI

Normal goods have a __________ YED, meaning consumption increases with income.

positive

Gross investment is the total addition to __________.

capital stock

Unemployed individuals actively seeking work but not working fall under __________ unemployment.

cyclical

A __________ consists of spending more than tax revenue in a financial year.

budget deficit

The __________ is a measure of the price of specific goods in different countries for currency comparison.

Purchasing Power Parity (PPP)

A __________ occurs when demand is greater than supply.

excess demand

The __________ effect suggests people spend more as their asset values rise, increasing consumer confidence.

wealth