MSc Economics
0.0 / 5
- Created by: PMD218
- Created on: 20-12-19 20:31
What is a Specific Tax?
Per unit tax (linear tax)
1 of 114
What is Normal Profit?
The profit required to keep the firm in an industry at its present capacity
2 of 114
What is an Ad Valorem tax?
A percentage of the total value
3 of 114
What is meant by the term "external economies"?
The economies which are enjoyed by all firms in an industry
4 of 114
What is Diminishing Marginal Utility?
Increased consumption eventually leads to decreased satisfaction
5 of 114
What are Marginal Costs?
The costs associated with producing an extra unit of output
6 of 114
What are Fixed Costs?
Unavoidable short-run costs which are present regardless of level of output
7 of 114
What are Variable Costs?
Costs which vary based upon output
8 of 114
What is meant by the term "Debt"?
The total amount owed as a nation
9 of 114
A two sector economy...?
Is a closed cycle economy
10 of 114
What is the Deficit?
The amount by which the national debt is growing
11 of 114
What kind of relationship does demand have with price?
Inverse
12 of 114
What kind of relationship does supply have with price?
Direct
13 of 114
Generally, what is "price elasticity"?
Change in price/income
14 of 114
Define "supply"
The quantity of product that a producer is prepared to make and offer for sale at a given time and given price
15 of 114
Define "demand"
The quantity of a product that people are able and willing to purchase at a given price and a given time
16 of 114
What is meant by the phrase 'ceteris paribus'?
All things remaining equal
17 of 114
In the long-run...
All factors of production can be variable
18 of 114
In the short-run...
At least one factor of production is fixed
19 of 114
Define "price"
Prices are signals and incentives to facilitate the rationing of scarce resources and allocation amongst competing ends
20 of 114
Define "effective demand"
Demand which involves being in the market and able to purchase
21 of 114
What is the opportunity cost?
The cost of forgoing the next best alternative
22 of 114
What is a positive externality?
Benefits that are not reflected in the price mechanisms for that good
23 of 114
What is the situation if a point falls within the boundary of a Production Possibility Frontier?
A state of inefficiency
24 of 114
What is the situation if a point falls directly on the boundary of a Production Possibility Frontier?
Output combinations are at maximum obtainable efficiency
25 of 114
On a Production Possibility Frontier - what happens if we increase our factors of production?
Curve extends outwards
26 of 114
What is "market equilibrium"?
Refers to a price at which both parties (suppliers and consumers) are agreed to exchange
27 of 114
Essentially, what is the Marginal Propensity to Save?
As income increases, there eventually becomes a point where the possibility to start saving occurs
28 of 114
In economics, what does the term "utility" refer to?
Satisfaction
29 of 114
'Diseconomies of Scale' occur when...
A firm exceeds the optimum level of output and average costs rise
30 of 114
What is meant by the term 'Supernormal Profit'?
Any profit over and above that of normal profit
31 of 114
'Subnormal Profits' occur when...
total costs exceed revenue
32 of 114
What fundamental impact does taxation have?
Discourages consumption
33 of 114
What is 'Diminishing Marginal Utility'?
Relates to increased consumption eventually leading to decreased satisfaction
34 of 114
How does a firm decide upon price and output (supply)?
Compares costs & revenues
35 of 114
What is a negative externality?
Costs that are not reflected in the price mechanisms for that good
36 of 114
Which term describes the additions to a three sector economy?
Injections
37 of 114
To which economical concept is the 'Multiplier Effect' linked?
Marginal Propensity to Consume
38 of 114
Aggregate demand can be defined as...
The total demand for goods and services within a particular market
39 of 114
If amplification of errors is a concern regarding credit agencies, how can this be termed?
'Concentration risk'
40 of 114
Which body regulates CRAs within Europe?
European Securities & Markets Authority
41 of 114
Which legislation ensures that all CRAs in the UK maintain separate databases?
Data Protection Act 1988
42 of 114
Which legislation in the UK do all CRAs fall under?
Consumer Credit Act 1974
43 of 114
From which market is the Global Financial Crisis known to have started?
US sub-prime mortgage market
44 of 114
At what value did the Bank of England value all financial losses during the Global Financial Crisis?
£1.8 trillion
45 of 114
Property cycles are...
recurrent but irregular fluctuations in the rate of all property total returns
46 of 114
Short property cycles last for...
4-7 years
47 of 114
Long property cycles last for...
9-10 years
48 of 114
Endogenous property cycles are those which...
originate from within the industry/property sector
49 of 114
Exogenous property cycles are those which...
those which originate from the macroeconomy (outside of the property industry)
50 of 114
Interest rates are
the price of money (expressed as a % of the sum) and they are determined by supply and demand of funds (liquidity, risk and expectations)
51 of 114
Liquidity in terms of finance relates to
lower rates generally charged on short-term finance as these loans can be recalled quickly
52 of 114
How does a reverse yield gap occur?
If high interest rates on long-term finance outweigh the yields achieved by the borrower
53 of 114
Ripening costs are...
those costs which arise through holding land in anticipation of profitable development (includes interest on capital tied up, plus any speculative amount paid above current use value in hope of obtaining planning permission)
54 of 114
Waiting costs are those which arise due to...
development taking time so there is a delay before revenue is received (includes interest & professional fees)
55 of 114
Dividends are
shares of profits
56 of 114
Debt finance is...
obtaining money via loans
57 of 114
Equity finance is...
obtaining money via the sale of shares
58 of 114
The FCA =
Financial Conduct Authority
59 of 114
The PRA =
Prudent Regulation Authority
60 of 114
Endowment mortgages
Involve the repayment of interest
61 of 114
What is supply like in the short run?
Inelastic/Perfectly Inelastic
62 of 114
What is supply like in the long run?
Elastic
63 of 114
What is market equilibrium?
Where market demand = market supply
64 of 114
Why is supply inelastic in short run?
Time needed for supply to react to changes in price
65 of 114
A table of price, number of items demanded & revenue is
A market demand schedule
66 of 114
What is the 'circular flow of income'?
Rate at which money goes around the economy
67 of 114
What is the correct formula for Aggregate Demand?
AD = C+I+G(X-M)
68 of 114
What does the term 'I' mean in the Aggregate Demand formula?
Investment
69 of 114
What does the term 'M' mean in the Aggregate Demand formula?
Imports
70 of 114
Marginal Costs are
The extra costs associated with each additional unit of production
71 of 114
In the short run
At least one FOP is fixed
72 of 114
In the long run
All FOPs can be variable
73 of 114
As output increases
Average costs decrease
74 of 114
Productive Efficiency of a firm is attained when
Lowest level of average costs are achieved
75 of 114
Diseconomies of scale occur when
A firm exceeds the optimum levels of output and average costs rise
76 of 114
Supernormal profit is also known as
Excess or Surplus profit
77 of 114
What is the FCA?
Financial Conduct Authority
78 of 114
Monopolistic Competition is most similar to
Perfect Competition
79 of 114
READ UP ON P.188 D. MYERS - POLLUTION TAX
P.188 D. MYERS (READ IT!)
80 of 114
What is a non-recourse loan?
A loan which involves only the collateral/security involved in that specific project
81 of 114
What is a recourse loan?
A loan which involves the collateral/security of any wider project
82 of 114
What is a limited recourse loan
A hybrid between recourse and non-recourse loan
83 of 114
Long term finance often involves...
equity participation
84 of 114
Property yield (long term finance) is
Where a minimum yield is agreed with the lender and surplus is profit for the developer
85 of 114
A disadvantage of a joint company is?
Tax must be paid on dividends
86 of 114
In order to sell shares a company must
become public and expect to raise at least £50m
87 of 114
Dividends are
shares of profit
88 of 114
Ordinary shares have a nominal value also known as a
par value
89 of 114
Bonds can also be known as
Loan Stock or Loan Notes
90 of 114
Eurobonds are usually worth between
£25-100m
91 of 114
The term for the time a bond can be redeemed is?
Maturity
92 of 114
If a lender obtains a charge on the tenants of a property this is called?
Rent charge
93 of 114
Real Estate investment trusts pay out?
90% in dividends
94 of 114
The PRA looks at
macroeconomic issues
95 of 114
A horizontal merger is
A merger of two companies in the same industry
96 of 114
A vertical merger is
A merger of two companies in the same industry but at different supply chain levels
97 of 114
A forward vertical merger is
movement towards the consumer
98 of 114
A backward vertical merger is
movement towards the raw materials
99 of 114
Elasticity =
the rate of change/level of response
100 of 114
Price elastic demand is
demand changes more than proportionally to change in price
101 of 114
Price inelastic demand is
demand changes less than proportionally to change in price
102 of 114
Normal goods are
Goods where the demand increases as income increases
103 of 114
Inferior goods are
Goods where the demand decreases as income increases
104 of 114
The statutory legislation underpinning business rates is
Local Government Finance Act 1988
105 of 114
'Completion notices' are served by local authorities
up to 3 months prior to completion
106 of 114
A hereditament is a
unit of property
107 of 114
Construction contributes
£90bn to UK economy
108 of 114
There are X number of construction firms in the UK
280,000
109 of 114
Construction accounts for X percentage of UK employment
10%
110 of 114
As efficiency increases, redevelopment increases, more capital is combined with land and is made cheaper (relative to land). What happens?
Need to build upwards
111 of 114
Owner occupation rose since 1920/30s. When was it at its peak?
2008
112 of 114
When was the peak of council housing reached?
1951
113 of 114
How many residential properties are in the UK?
26.6m
114 of 114
Other cards in this set
Card 2
Front
What is Normal Profit?
Back
The profit required to keep the firm in an industry at its present capacity
Card 3
Front
What is an Ad Valorem tax?
Back
Card 4
Front
What is meant by the term "external economies"?
Back
Card 5
Front
What is Diminishing Marginal Utility?
Back
Similar Economics resources:
0.0 / 5
0.0 / 5
1.0 / 5 based on 2 ratings
0.0 / 5
5.0 / 5 based on 1 rating
0.0 / 5
5.0 / 5 based on 1 rating
0.0 / 5
Comments
No comments have yet been made