Economics Defintions

2. the sale of public sector assets to the private sector
5. wage rises leading to higher prices which lead to further wage claims and price rises
6. a situation when demand and supply are not equal
9. a type of tax on income and wealth
10. a business owned by one person
12. a business organisation owned by the government which is designed to act in the public interest
13. a situation when there is not enough to satisfy everyone's wants
14. a payment by a government to encourage the production or consumption of a product
15. a product which does not require resources to produce it and therefore has an opportunity cost
16. a type of tax on expenditure
17. a product which the government considers as beneficial and which will be under-consumes if left to market forces
18. a product which is non-rival and non-excludable and hence needs to be financed by taxation

1. rises in the price level caused by higher costs of production
3. a tax on imports
4. the next best alternative forgone
6. income after income tax and national insurance contributions have been deducted
7. a fall in a country's output over a period of six months or more
8. the value of replacing capital
11. a product which requires resources to produce it and therefore has an opportunity cost