Each Monday for the past nine months, I have introduced key terms in economics in our Economics for Amateurs
Match
the following seven definitions with the terms in the drop-down boxes. In case you want to read more about the individual terms after you have done
the test we link to the original articles on the answer page.
1. The extra benefit that we get when we buy something that is worth more to us than the price we pay.
Economic rent Deflation Consumer surplus Goodwill Terms of trade Fiscal drag Moral hazard
2. An
increase in the share of gross domestic product that is paid in
taxes because of a failure to increase tax allowances and bands to
take account of rising prices and wages.
Economic rent Deflation Consumer surplus Goodwill Terms of trade Fiscal drag Moral hazard
3. A sustained fall in the general price level.
Economic rent Deflation Consumer surplus Goodwill Terms of trade Fiscal drag Moral hazard
4. The danger that people will change their behaviour if they know that
they will be protected in some way from the consequences of their
actions.
Economic rent Deflation Consumer surplus Goodwill Terms of trade Fiscal drag Moral hazard
5. The extra amount earned by a factor of production over and above that which is necessary to keep it in its current use.
Economic rent Deflation Consumer surplus Goodwill Terms of trade Fiscal drag Moral hazard
6. The
relationship between the average price of the goods and services that a
country exports and the average price of its imports.
Economic rent Deflation Consumer surplus Goodwill Terms of trade Fiscal drag Moral hazard
7. The reputation of a business, which is calculated as part of its value when it is sold.
Economic rent Deflation Consumer surplus Goodwill Terms of trade Fiscal drag Moral hazard
