AS Economics Unit 1 Definition

Scarcity



Production Probability Frontier



Opportunity cost



Specialization


Division of labour


Positive statement


Normative statement


Nominal value


Real value


Demand




Supply




Free market economy


Price Mechanism


Planned economy


Mixed economy


Price elasticity of demand (Ped)



Price elasticity of supply (Pes)



Income elasticity of demand (YED)



Inferior good


Normal good


Cross elasticity of demand (XED)



Substitute good



Complementary good



Indirect tax





Subsidy





Market failure



External cost



Private cost



Social cost



External benefit



Private benefit



Social benefit





Merit good


Demerit good


Public good


Non-rivalry



Non-excludability



Free rider problem


Geographical immobility


Occupational immobility


Structural unemployment


Asymmetric information


Adverse selection


Moral Hazard


Principal agent problem



Minimum price




Maximum price




Guaranteed price





Buffer stock scheme







Government failure