EC1117 Markets and Governments: An Introduction to Economics Exam Review

Vocabulary flashcards covering key economic concepts from the Winter 2024 EC1117 exam, including poverty measures, market analysis, and inequality metrics.

Standard adult equivalence scales

A measurement used to adjust household income to account for the number of adults ($A$) and children ($C$) in a family, allowing for comparison of living standards across different family compositions.

60% Relative Poverty Line

A threshold used to identify individuals at risk of poverty, calculated as $60\%$ of the median equivalised income.

At risk of poverty

A status assigned to families or individuals whose equivalised income falls below the determined relative poverty threshold, such as the $60\%$ line.

Deprivation Score

A numerical value representing the lack of specific goods or services considered essential for a basic standard of living; used to measure material hardship.

Poverty gap

A calculation of the distance between the incomes of those living below the poverty line and the poverty line itself.

Equilibrium price and quantity

The specific price and amount of a good or service in a market where the quantity demanded by consumers exactly equals the quantity supplied by producers.

Price elasticity of demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, calculated as the percentage change in quantity demanded divided by the percentage change in price.

Price ceiling

A government-imposed legal maximum price that can be charged for a product or service, which can cause shortages if set below the equilibrium price.

Rent Pressure Zone

A designated area where rent increases are legally limited to a specific percentage to manage housing affordability.

Rent ceiling

A specific type of price ceiling applied to the housing market that limits the amount a landlord can charge for rent.

Consumer surplus

The economic measure of consumer benefit, calculated as the difference between what consumers are willing to pay and what they actually pay.

Producer surplus

The difference between the amount a producer receives from selling a good and the minimum amount they would be willing to accept for it.

Survey on Income and Living Conditions (SILC)

A survey used to gather data on household income and assess various poverty measures and living standards in Ireland.

Lorenz curve

A graphical representation showing the cumulative percentage of total income received against the cumulative percentage of the population, used to visualize income inequality.

Gini coefficient

A statistical measure of inequality derived from the Lorenz curve, where $0$ represents perfect equality and $1$ represents perfect inequality.

Quintile

A statistical value representing one-fifth, or $20\%$, of a population, often used to analyze the share of total income held by different segments of society.

Equivalised disposable income

Household income after taxes and transfers that has been adjusted for the size and composition of the household to reflect the material standard of living.