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3.1.1/2 definitions - Coggle Diagram
3.1.1/2 definitions
Normative statement:
- a valued judgement that cannot to be tested and verified.
Positive statement:
- fact based judgement that can be tested/ measured and is objective.
Factors of production:
- land
- labour
- capital
- enterprise
Price elasticity of demand:
- the responsiveness of demand to a change in price
Income elasticity of demand:
- the responsiveness of demand to a change in income
Cross price elasticity:
- the responsiveness of demand for once good in response to a change in price of another good.
Normal good:
- An elastic good which is demanded more as price decreases or income increases.
Inferior good:
- an inelastic good that demand decreases as income increases.
Complementary good:
- a good that is demanded because another good in demanded, used together with the other good. Joint demand
Price elasticity of supply:
- The responsiveness of supply to a change in price.
Equilibrium price:
- when the supply of goods matches the demand, also known as clearing price.
Economic growth:
- the rate of change of output
Composite demand:
- when a good is demanded for more than one distinct use.
Income:
- the amount of money received by a person, g
Substitute goods:
- goods or services in competitive demand. (Gross price elastic)
Composite demand:
- goods that have more than one use.
Derived demand:
- demand that comes from the demand of something else. (good that is needed for the provision of another good)
Income:
- A flow of money going to factors of production e.g wages.
Enterprise:
- an organisational unit producing goods or services.
Excess demand:
- when demand exceeds supply at a given price.
Excess supply:
- supply exceeds demand at a given price.
Opportunity cost:
- the next best alternative foregone when an economic objective is made.
Demand:
- quantity of goods and services demanded at any given price over a period of time
Joint supply:
- when the production of one good leads to the production of another.
Joint demand:
- goods that tend to be demanded together.
price: - the monetary value of a good, service or resource during transaction
Wealth: - an accumulation of economic resources that can be measured in terms or either real goods or money value.
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productive efficiency: - when all the goods and services are allocated to their most valuable uses with minimum waste.
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labour: - physical, mental and social effort to produce goods and services.
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