| Question | Answer |
| A tax that increases with the value of a good. | Ad Valorem tax
|
The difference between the value of visible exports and visible imports. | Balance of Trade
| A scenario whereby the amount of capital increases, resulting in more capital per worker in the economy. | Capital Deepening
| A good that obeys the law of demand and which has a positive income effect. | Normal Good
| Reducing tax liabilities by making false returns or not making any returns at all. | Tax Evasion
| The earning of a factor in the next best alternative employment. | Transfer Earnings
| Recurring patterns of expansion and contraction in the economy. | Trade Cycle
| The ratio between the average price of exports and the average price of imports. | Terms of Trade
| The ease with which a factor of production can move from one occupation to another. | Occupational mobility
| This measures the proportionate change in demand for a good caused by a proportionate change in the income. | Income Elasticity of Demand
| Costs that do not change as output changes. | Fixed Costs
| An increase in GNP per head of population without any changes to the structure of society. | Economic Growth
| An economy that does not engage in international trade. | Closed Economy
| Forces within a firm that cause the average/unit cost of that firm to decline as it grows in size. | Internal Economies of Scale
| Economic rent of a temporary nature. | Quasi Economic Rent
| A cost to society of an action or output. | Social Cost
| The measure used by the Central Statistics Office to measure unemployment. | Quarterly National Household Survey (QNHS)
| A situation where wage levels rise above the negotiated levels due to a strong demand for labour. | Wage Drift
| This is where a firm sets its price so low that potential new firms are discouraged from entering the industry. | Limit pricing |
