How many definitions can you identify from the line- up in one minute? Click here to start Instructions.

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Slide 2 How many definitions can you identify from the line- up in one minute? Click here to start Instructions Slide 3 Exists when the competitive outcome of markets is not efficient from the point of view of the economy as a whole. When demand for a product falls as real incomes increases Costs that do not vary directly with the level of output. A measure of the welfare that people gain from the consumption of goods and services,. Market failure 7 7 1 Click correct answer below Your time is up! Your final score is shown in the clock face above. Click here to try again. Your time is up! Your final score is shown in the clock face above. Click here to try again. Slide 4 Allocative efficiency The value that consumers place on a good or service equals the cost of the resources used up in production. Income elasticity of demand Measures the relationship between a change in quantity demanded and a change in real income. Barriers to entry Factors which make it difficult or expensive for new firms to enter a market.Indirect tax Tax is imposed on producers (suppliers) by the government. Basic economic problem There are infinite wants but finite (non- renewable) resources with which to satisfy themInelastic demandWhen the price elasticity of demand is less than 1 Buffer stock Schemes seek to stabilize the market price of agricultural products.Inferior good When demand for a product falls as real incomes increases Capital goods Goods such as plant (factories) and machinery and equipment.Joint supply A situation where an increase or decrease in the supply of one good leads to an increase or decrease in supply of another by-product. Collusion Any explicit or implicit agreement between suppliers in a market to avoid competition.Law of demand Where there is an inverse relationship between the price of a good and demand. Competitive market A market where no single firm has a dominant position.Marginal cost The change in total costs resulting from increasing output by one unit. Complements Two goods or services are said to be in joint demand.Market equilibriumA state of equality between demand and supply. Composite demand Where goods or services have more than one use.Market failure Exists when the competitive outcome of markets is not efficient from the point of view of the economy as a whole. Consumer surplus A measure of the welfare that people gain from the consumption of goods and services,.Maximum price A legally-imposed price in a market that suppliers cannot exceed. Consumption The act of using goods and services to satisfy wants.Merit good A product that society values and judges that everyone should have regardless of whether an individual wants them. Contestable market Market with no entry barriers - firms can enter or leave an without significant cost.Monopoly A single seller of a product in a given market or industry Cross price elasticity of demand Responsiveness of demand for good X following a change in the price of good Y (a related good).Negative externality These occur when production and/or consumption impose external costs on third parties. Demand Quantity of a good or service that consumers are willing and able to buy at a given price in a given time period.Non-rival consumption Where the consumption of a good by one person does not reduce the amount available for others. Demand curve The relationship between the price of an item and the quantity demanded over a period of time.Normal goods Goods that have a positive income elasticity of demand. De-merit goods Goods that have negative externalities which causes a fall in social welfare.Normative statements Where an opinion about what ought to be is expressed. Derived demand The demand for a product X might be strongly linked to the demand for a related product Y.Opportunity cost The cost of any choice in terms of the next best alternative foregone. Diminishing returns As more of a variable factor is added to a fixed factor a firm will reach a point where it has a disproportionate quantity of labour to capital.Positive externalities When third parties benefit from the spill-over effects of production/consumption. Diversification The reduction of risk achieved by replacing a single risk with a larger number of smaller unrelated risksPoverty trap It creates a disincentive to look for work because of the effects of the tax and benefits system. Division of labour The specialization of labour in specific tasks, intended to increase productivity Price elasticity of demand Measures the responsiveness of demand for a product following a change in its own price. Economic efficiency Mmaking the best use of our scarce resources among competing ends so that economic and social welfare is maximised over timePrivate cost Costs of an economic activity to individuals and firms. Economy of scale Reductions in long-run average cost from an increase in the scale of production. Production possibility frontier A boundary that shows the combinations of two or more goods and services that can be produced using all available factor resources efficiently Effective demand Only when a consumers' desire to buy a product is backed up by an ability to pay for it.Productive efficiency When a business in a given market or industry reaches the lowest point of its average cost curve. Elastic demand Demand for which price elasticity is greater than 1Public goods Consumption of the good by one person does not reduce the amount available for consumption by another person, and non-excludable. Elasticity of supply Measures the relationship between change in quantity supplied and a change in price.Relative poverty Measures the extent to which a household's financial resources falls below an average income threshold. Equilibrium A situation where there is no tendency for change.Social cost The cost of production or consumption of a product for society as a whole. Excess demand The difference between the quantity supplied and the higher quantity demanded when price is set below the equilibrium price.Subsidy Payments by the government to suppliers that reduce their costs. Fixed costs Costs that do not vary directly with the level of output.Substitutes Goods in competitive demand and act as replacements for another product Government failurePolicies that cause a deeper market failure.Supply Quantity of a good or service that a producer is willing and able to produce. Horizontal integration Where two firms join at the same stage of production in one industry.Time lags The amount of time between the implementation of a policy and its effects. 25 53 19 55 3 46 35 39 32 29 59 56 28 42 40 10 37 1 60 17 45 5 23 31 14 8 58 52 6 13 47 34 24 48 2 20 22 49 7 12 54 33 50 4 43 41 51 57 9 18 21 27 15 11 26 36 44 30 38 16 9 Slide 5 Instructions: When opening this file you will be prompted to enable macros. Ensure that you do enable macros. Start the slideshow from slide 1. Click on Click here to start. The activity starts immediately. A key phrase is shown in the black box towards the top of the screen. Four possible definitions will be shown next to the four men in the line-up. One of the four is the correct answer and the other three are incorrect. The clock hand will be turning. A score of zero will be shown on the clock face. Click on the answer that you think correctly defines the key phrase. If you are correct, another phrase (plus 4 possible answers) will appear and the score will increase by one. If you are incorrect, a red warning box will appear click on this to reveal the four possible answer and choose an alternative answer until you choose the correct answer! After one minute the clock will stop and the game ends. Click on the main box to start again. Instructions: When opening this file you will be prompted to enable macros. Ensure that you do enable macros. Start the slideshow from slide 1. Click on Click here to start. The activity starts immediately. A key phrase is shown in the black box towards the top of the screen. Four possible definitions will be shown next to the four men in the line-up. One of the four is the correct answer and the other three are incorrect. The clock hand will be turning. A score of zero will be shown on the clock face. Click on the answer that you think correctly defines the key phrase. If you are correct, another phrase (plus 4 possible answers) will appear and the score will increase by one. If you are incorrect, a red warning box will appear click on this to reveal the four possible answer and choose an alternative answer until you choose the correct answer! After one minute the clock will stop and the game ends. Click on the main box to start again.