ib economics letter A

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Across
  1. 2. - Absolute poverty is measured in terms of the basic need for survival. It is the amount of income a person needs to have in order to stay alive.
  2. 3. - Anchors are mental reference points, relating to ideas or values, which are used to make decisions. Value is often set by anchors or imprints in our minds that we then use as mental reference points when making decisions. When an idea or a value is firmly anchored in a person’s mind, it can lead to automatic decisions and behaviours.
  3. 4. - The features of government fiscal policy (for example, unemployment benefits and direct tax revenues) that automatically counter-balance fluctuations in economic activity. For example, government spending on unemployment benefits automatically rise and direct tax revenues automatically fall when economy activity is slow.
  4. 5. - This occurs when previously unemployed factors of production are brought in to use. It is represented by a movement from a point within a PPC to a new point nearer to the PPC.
  5. 7. - Technology that caters to the particular economic, social, and environmental characteristics of its users.
  6. 10. - This is where a country is able to produce more output than other countries using the same input of factors of production.
  7. 11. - The total spending in an economy consisting of consumption, investment, government expenditure and net exports.
  8. 13. - A curve showing the relationship between the average price level and real GDP.
  9. 14. - This is where one party in an economic transaction has access to more or better information than the other party.
Down
  1. 1. The proportion of a person’s income that is paid in tax, usually expressed as a percentage.
  2. 2. (AS) - The total amount of domestic goods and services supplied by businesses and the government, including both consumer goods and capital goods.
  3. 5. - An increase in the value of one currency in terms of another currency in a floating exchange rate system.
  4. 6. - Policies that are intended to regulate the market share of an individual company in order to enforce competition.
  5. 8. - The level of output where marginal cost is equal to average revenue. The firm sells the last unit it produces at the amount that it cost to make it. The socially optimum level of output.
  6. 9. inefficiency - This occurs where the marginal social cost of producing a good is not equal to the marginal social benefit of the good to society. In different words, it occurs where the marginal cost of producing a good (including any external costs) is not equal to the price that is charged to consumers.
  7. 12. - This occurs when a buyer and seller do not have the same information, causing a transaction to take place based upon uneven terms.