Economics Definitions - Unit 1 (Microeconomics)

Definitions are a key part of the AS economics exam. The following includes definitions for the AQA Economics Unit 1 exam. Although being specifically written for AQA, the terms will still be useful for other exam boards. This list is not a complete guide but does cover some of the majority of terms used throughout the AS course.

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  • Created by: josh-95
  • Created on: 20-04-16 13:09

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Economics Definitions ­ Unit 1 (Microeconomics)
Definitions are a key part of the AS economics exam. The following includes definitions for the
AQA Economics Unit 1 exam. Although being specifically written for AQA, the terms will still be
useful for other exam boards. This list is not a complete guide…

Page 2

Preview of page 2
planned supply.
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Supply The quantity that a firm is willing and able to
sell at a given price.
Effective demand Demand backed up with the ability to pay.
Condition of demand A factor that determines the position of the
demand curve.
Normal good A good for which demand increases as
income increases.…

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by an individual, group or company.
Division of labour Different workers perform different tasks in
the course of producing a good or service.
Page | 2

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Barter A medium of exchange which occurs when
there is a double coincidence of wants.
Money An effective medium of exchange which
allows specialisation.
Consumer surplus People that would have been willing to pay
more than the equilibrium price.
Producer surplus Businesses that would have been prepared to supply at…

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Productive efficiency Occurs when it is impossible to produce more of one good without
producing less of another.
Dynamic efficiency Occurs when a firm is actively reducing its cost curves by implementing new
production processes.
Indirect tax A cost imposed by the government which increases the supply costs faced by…

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Economics Definitions - Unit 1 (Microeconomics)

Definitions are a key part of the AS economics exam. The following includes definitions for the AQA Economics Unit 1 exam. Although being specifically written for AQA, the terms will still be useful for other exam boards. This list is not a complete guide but does cover some of the majority of terms used throughout the AS course.

  • Created by: josh-95
  • Created on: 20-04-16 13:09

Pages in this set

Page 1

Preview of page 1
Economics Definitions ­ Unit 1 (Microeconomics)
Definitions are a key part of the AS economics exam. The following includes definitions for the
AQA Economics Unit 1 exam. Although being specifically written for AQA, the terms will still be
useful for other exam boards. This list is not a complete guide…

Page 2

Preview of page 2
planned supply.
Page | 1

Page 3

Preview of page 3
Supply The quantity that a firm is willing and able to
sell at a given price.
Effective demand Demand backed up with the ability to pay.
Condition of demand A factor that determines the position of the
demand curve.
Normal good A good for which demand increases as
income increases.…

Page 4

Preview of page 4
by an individual, group or company.
Division of labour Different workers perform different tasks in
the course of producing a good or service.
Page | 2

Page 5

Preview of page 5
Barter A medium of exchange which occurs when
there is a double coincidence of wants.
Money An effective medium of exchange which
allows specialisation.
Consumer surplus People that would have been willing to pay
more than the equilibrium price.
Producer surplus Businesses that would have been prepared to supply at…

Page 6

Preview of page 6

Page 7

Preview of page 7
Productive efficiency Occurs when it is impossible to produce more of one good without
producing less of another.
Dynamic efficiency Occurs when a firm is actively reducing its cost curves by implementing new
production processes.
Indirect tax A cost imposed by the government which increases the supply costs faced by…

Comments

No comments have yet been made