Key Concepts (Grade 12 NSC Matric Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Allocative efficiency
Allocative efficiency
Resources match consumer wants perfectly; Pareto efficiency
Market failure
Market failure
Supply & demand fail to allocate resources efficiently
Merit goods examples
Merit goods examples
Healthcare & education
Demerit goods examples
Demerit goods examples
Cigarettes & gambling
Public goods: two characteristics
Public goods: two characteristics
Non-excludable & non-rival
Negative externality example
Negative externality example
Air pollution from factories
Social cost =
Social cost =
Private cost + external cost
Social benefit =
Social benefit =
Private benefit + external benefit
Price ceilings
Price ceilings
Max prices below equilibrium to make goods affordable
Minimum wage is a type of
Minimum wage is a type of
Price floor