Economics Defintions

1. the sale of public sector assets to the private sector
3. wage rises leading to higher prices which lead to further wage claims and price rises
5. a business organisation owned by the government which is designed to act in the public interest
6. the value of replacing capital
9. a business owned by one person
11. a tax on imports
13. a type of tax on expenditure
14. a situation when there is not enough to satisfy everyone's wants
16. income after income tax and national insurance contributions have been deducted
18. a product which is non-rival and non-excludable and hence needs to be financed by taxation
19. a product which the government considers as beneficial and which will be under-consumes if left to market forces

2. the next best alternative forgone
4. rises in the price level caused by higher costs of production
7. a type of tax on income and wealth
8. a situation when demand and supply are not equal
10. a payment by a government to encourage the production or consumption of a product
12. a fall in a country's output over a period of six months or more
15. a product which requires resources to produce it and therefore has an opportunity cost
17. a product which does not require resources to produce it and therefore has an opportunity cost