Define the following economic terms: common access resources, common market, comparative advantage, competitive supply, complements, concentration ratios, consumer confidence, cons... Define the following economic terms: common access resources, common market, comparative advantage, competitive supply, complements, concentration ratios, consumer confidence, consumer nudges, consumer price index (CPI), consumer surplus, consumption (C), contractionary monetary policy, corporate social responsibility, cost-push inflation, credit creation, crowding out, current account, current account deficit, current account surplus, current transfers, customs union. Read more

Common access resources lack private ownership leading to overuse. Common markets allow free trade among member countries. Comparative advantage refers to producing goods at lower opportunity costs than others. Consumer surpluses occur when consumers pay less than their maximum willingness to pay.

Here are the definitions of the economic terms:

• Common access resources: Natural resources like air, oceans, or fisheries, where no private ownership exists, leading to potential overuse.

• Common market: A type of trade bloc involving a group of countries that allow free trade among members, with common external tariffs.

• Comparative advantage: The ability of an entity to produce a good or service at a lower opportunity cost than others, driving trade efficiency.

• Competitive supply: When producers compete in supplying products due to similar factors like production methods or resource requirements.

• Complements: Goods that are often used together, where an increase in demand for one leads to an increase in demand for the other, such as cars and gasoline.

• Concentration ratios: Measures that indicate the size of firms within an industry, often used to assess the level of competition.

• Consumer confidence: A measure of how optimistic consumers are about the economy and their financial situation, influencing spending behavior.

• Consumer nudges: Small changes in the environment that encourage people to make particular decisions, often without restricting their choice.

• Consumer price index (CPI): A measure that examines the weighted average of prices of a basket of consumer goods and services, used to gauge inflation.

• Consumer surplus: The difference between what consumers are willing to pay for a good or service and what they actually pay (https://www.investopedia.com/terms/c/consumer_surplus.asp).

• Consumption (C): The total value of all goods and services consumed in an economy, reflecting household consumption expenditure.

• Contractionary monetary policy: Measures by a central bank to reduce money supply, often to control inflation, which can lead to increased interest rates.

• Corporate social responsibility: Business practices that involve initiatives that benefit society, focusing on ethical and sustainable operations.

• Cost-push inflation: A type of inflation caused by increasing costs of production and decreasing aggregate supply.

• Credit creation: The process by which banks provide more loans than the actual reserves, effectively creating money in the economy.

• Crowding out: A situation where increased government spending reduces or eliminates private sector investment due to rising interest rates.

• Current account: A section of the balance of payments comprising transactions in goods, services, investment income, and current transfers.

• Current account deficit: Occurs when a country's total imports of goods, services, and transfers exceed its total exports.

• Current account surplus: Occurs when a country's total exports of goods, services, and income exceed its imports.

• Current transfers: Payments made between residents and non-residents without a corresponding good or service being provided, e.g., foreign aid.

• Customs union: An agreement between two or more countries to remove trade barriers and adopt a common external tariff on imports from non-members.