Economics-Unit 1 0.0 / 5 ? EconomicsUnit 1GCSEOCR Created by: EGFRevisionCreated on: 14-04-18 18:05 The next best alternative forgone when making a choice. What we give up when we make a choice. Opportunity Cost 1 of 26 A market situation in which there are a large number of buyer(demand) and sellers (supply) Competitive Market 2 of 26 When a firm has more than 25% market share Monopoly Power 3 of 26 The quantity buyers are willing and able to buy at a given price in a given period of time Demand 4 of 26 Goods for which demand increases when incomes increase Normal Good 5 of 26 A good that decreases in demand when consumer income rises Inferior Good 6 of 26 Measures the responsiveness of the quantity demanded to a change in the price of a good Price Elasticity of Demand 7 of 26 The total amount of money a firm receives when selling its products Total Revenue 8 of 26 Increasing price will reduce quantity sold by a greater amount and revenue will fall Elastic 9 of 26 Increasing price will reduce quantity sold by a smaller amount and revenue will increase Inelastic 10 of 26 This is the quantity a producer is willing and able to produce at a given price Supply 11 of 26 Measures the responsiveness of quantity supplied to a change in price Price Elasticity of Demand 12 of 26 When demand and supply meet and the market 'clears' Equilibrium 13 of 26 A tax placed on a good service which is a specific amount of money per units bought Specific Tax 14 of 26 The growing, harvesting, sourcing of natural/raw materials sector Primary 15 of 26 The making/putting together/manufacturing/constructing sector Secondary 16 of 26 The service and retailing sector Tertiary 17 of 26 A minimum price is set above the equilibrium and the price is not allowed to go below it Minimum Price 18 of 26 Agreed coming together of two firms Merger 19 of 26 When one firm seeks to take control of another, an either be friendly or hostile Takeover 20 of 26 This occurs when two firms come together through a merger or takeover Integration 21 of 26 Whena one frim grows in size (increasing output) and so benefits from lower average costs Internal economies of scale 22 of 26 When a whole industry grows in size , so firms within that industry benefit form lower average costs External economies of scale 23 of 26 An individual payment, usually for a weeks work. It tends to be given as an amount per hour Wage 24 of 26 An individual payemtn ususally for a months work. It tends to be given as an amount per year, divided into twelve individual payments Salary 25 of 26 The minimum pay per hour that almost all workers are entitled to National Minimum Wage 26 of 26
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