Economics is a __ science that studies society and relationships between people.
social
The __ assumption allows economists to isolate the relationship between two variables by holding all other factors constant.
ceteris paribus
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These flashcards cover key concepts and terminologies from the Edexcel A-Level Economics course theme focused on markets and market failure.
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Economics is a __ science that studies society and relationships between people.
social
The __ assumption allows economists to isolate the relationship between two variables by holding all other factors constant.
ceteris paribus
Positive statements are __ statements that can be tested and validated.
objective
Negative externalities occur when social costs exceed __ costs in production or consumption.
private
Public goods are characterized by __ and non-excludability, making them difficult to supply in a market.
non-rivalry
A minimum price is a __ price that cannot be exceeded by producers.
legally imposed maximum
The __ function of the price mechanism occurs when prices signal to producers where resources are needed.
signalling
An indirect tax causes the supply curve to shift __, leading to a higher market price and reduced quantity demanded.
inward
The __ refers to the unintended consequences of government actions, often resulting in market failure.
law of unintended consequences
Information failure occurs when consumers lack __, leading to potentially poor decision making.
accurate information