Economics

6. it is the willingness and ability to purchase a quantity of a good or service at a certain price over a given time period
9. they are the "bad" effects that are suffered by a third• party when a good or service is produced or consumed.
13. it is a measure of the responsiveness of the quantity demanded of a good or service when there is a change in its price.
15. they are beneficial effects that are enjoyed by a third party when a good or service is produced or consumed.
16. a demand-side policy using changes in the money supply or interest rates to achieve economic objectives relating to inflation and unemployment.

1. a simplified model of the economy that shows the flow of money through the economy.
2. it is the market-clearing price. It is set where D = S.
3. the study of aggregate economic activity. It investigates how the economy as a whole works.
4. it is a broad concept involving improvement in standards of living, reduction in poverty, improved health and education.
5. states that as the price of a good falls, the quantity demanded will normally increase.
7. states that as the price of good rises, the quantity supplied will normally rise.
8. demand-side policy using changes in government spending and/or direct taxation to achieve economic objectives relating to inflation and unemployment.
10. where a change in the price of a good or service leads to a greater than proportional change in the quantity supplied of the good or service. (PES would be greater than one.)
11. it is the willingness and ability of a producer to produce a quantity of a good or service at a given price in a given time period.
12. the study of the behaviour of individual consumers, firms, and industries and the determination of market prices and quantities of good, services, and factors of production.
14. where a change in the price of a good or service leads to a less than proportional change in the quantity supplied of the good or service. (PES would be greater than one.)