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14 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What is a positive statement |
Statements that can be tested to be true or false |
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What is a normative statement |
Statements that are value judgements or opinions |
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What are the 4 functions of money |
1. Medium of exchange 2. Store of value 3. Unit of account 4. Standard of deferred payment |
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Characteristics of money |
P- Portable A- Acceptable D- Divisible D- Durable L- Limited E- Extremely difficult to forge R- Recognisable |
Paddler |
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What are the 4 types of goods |
Consumer goods Capital goods Economic goods Free goods |
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What are the 2 systems of human actions |
Automatic Systems Reflective Systems |
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What are the 4 economic agents |
Consumers Firms Workers The government |
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Why may consumers not act rationally |
Habitual behaviour Herding behaviour Computational weakness |
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What are the problems with trade pollution permits |
It penalises smaller firms Difficult to allocate Firms could pass the cost onto customers |
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What are the advantages of trade pollution permits |
Encourages investment in new technology Raises revenue for government Provides profit incentive to firms |
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What are the problems with minimum prices |
Black Markets Difficult to target Administration |
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What are the advantages to minimum prices |
Prevents overconsumption of demerit goods Can fix negative consumption externalities |
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What are the problems with maximum prices |
Black markets Difficult to target Administration |
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What are the advantages for maximum prices |
Creates a ceiling for merit goods Can help solve positive consumption externalities |
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