Economic Concepts Flashcards

Front

Define a minimum price.

Back

A price set by the government above the equilibrium price. It acts as a price floor to encourage higher supply and will result in a surplus.

Front

Define emigration.

Back

Emigration is when people exit or leave a country to live in another country.

Front

Define, with an example, a capital good.

Back

A capital good is a good used to produce another good or service. It is a human-made good used for production, such as a machine.

Front

Define, with an example, a fixed cost.

Back

A fixed cost is a cost that does not change with output and has to be paid even when output is zero, such as rent. It includes costs like electricity bills and wages.

Front

Define a Consumer Prices Index.

Back

A Consumer Prices Index is a measure of inflation or cost of living using weights and a basket of goods and services.

Front

Define external growth of firms.

Back

External growth of firms is the increase in size or output of a firm due to a merger or takeover. It does not include acquisition as a merger.

Front

Define a shortage.

Back

A shortage occurs when demand exceeds supply. It happens when there is too much demand or not enough supply, and supply is low while demand is high.

Front

Define unemployment rate.

Back

The unemployment rate is the number of unemployed divided by the labor force, multiplied by 100. It represents the percentage of the labor force without a job, including those willing and able to work who cannot find employment.

Front

Define tertiary sector using an example apart from healthcare.

Back

The tertiary sector covers the provision of services. Examples include banking, car showrooms, coffee shops, and education.

Front

Secondary sector

Back

The sector covering construction and manufacturing, such as car manufacturing. It processes raw materials and involves the production of goods.