Economics

?
  • Created by: arryila
  • Created on: 09-05-19 20:02
Allocation of Resources
How scarce resources are distributed among producers and how scarce goods and services are allocated among consumers
1 of 174
Asset
Something that is expected to provide a benefit to the owner in the future
2 of 174
Avarage Cost
The cost of producing a unit
3 of 174
Avarage Revenue
The revenue per unit sold
4 of 174
Balance of Payments
The record of all financial transactions between one country and the rest of the world
5 of 174
Balanced Current Account
Where the sum of exports plus the inflow of money and transfers is equal to the sum of imports plus the outflow of money and transfers
6 of 174
Balance of Payments on the Current Account
The total net trade in goods and services, income flows and transfers between one country and the rest of the world
7 of 174
Balanced Government Budget
Where government spending is equal to tax revenue
8 of 174
Bank Rate
Rate set by the Bank of England that influences all other rates of interest in the country
9 of 174
Boom
A period of high economic activity and high levels of employment
10 of 174
Budget Deficit
Where government spending is more than tax revenue
11 of 174
Budget Surplus
Where government spending is less than tax revenue
12 of 174
Building Society
A mutual financial institution that is owned by its members. It's primary objectives are to receive deposits from its members and to lend money for members to purchase property
13 of 174
Capital
The factor of production that relates to the human-made aids to production
14 of 174
Claimant Count
The method of measuring unemployment according to the number of people who are claiming unemployment related benefits
15 of 174
Competition
Where different firms are trying to sell a consumer a similar product
16 of 174
Collective Bargaining
Negotiations between a recognized trade union and employer/s
17 of 174
Competition Policy
A government policy to promote competition
18 of 174
Complement
Good or service that goes together with another such as cars and fuel
19 of 174
Consumer
A person or organisation that directly uses a good or service
20 of 174
CPI
Method used to calculate the rate of inflation
21 of 174
Consumer Sovereignty
Through their purchases, consumers can influence what producers supply and thus how resources are allocated
22 of 174
Contraction of Supply
The movement along the supply curve leading to a decrease in price and quantity
23 of 174
Cost of Living
The price level of goods and services bought by the average household
24 of 174
Currency
The system of money used in a country or a group of countries
25 of 174
Current Account
The record of trade in goods and services, income flows and money transfers between one country and the rest of the world
26 of 174
Current Account Deficit
Where the sum of exports plus the inflow of money and transfers is less than the sum of imports plus the outflow of money and transfers
27 of 174
Current Account Surplus
Where the sum of exports plus the inflow of money and transfers is more than the sum of imports plus the outflow of money and transfers
28 of 174
Cyclical Unemployment
Unemployment caused by a lack of demand in the economy
29 of 174
Demand
The ability and willingness of consumers to purchase a particular good or service at a given price in a given time period
30 of 174
Derived Demand
Occurs when a product or factor of production is not demanded for itself, but its dependent on the demand for the product it helps to produce
31 of 174
Determination of Price
The interaction of the free market forces of supply and demand to establish a general level of price for a good or service
32 of 174
Developed Country
A country with high GDP per capita and developed industry and service sectors
33 of 174
Direct Tax
A tax on income or wealth
34 of 174
Diseconomies of Scale
When the average cost of production begin to increase as a firm grows in size
35 of 174
Disequilibrium
Where the quantity demanded does not equal the quantity supplied
36 of 174
Disposable Income
Income available after the effect of direct taxes and benefits, often called net income
37 of 174
Distribution of Income
How income is shared out between individuals and households
38 of 174
Distribution of Wealth
How wealth is shared out between individuals and households
39 of 174
Division of Labour
Where workers specialize in or concentrate on one area of the production process
40 of 174
Economic Choice
An option for the use of selected scarce resources
41 of 174
Economic Growth
Short Run- Growth in GDP over time Long Run- An increase in the productive capacity of a country
42 of 174
Economic Problem
Unlimited wants, scarce resources and how to allocate them
43 of 174
Economic Sustainability
The best use of resources in order to create responsible development or growth now and into the future
44 of 174
Economies of Scale
The cost advantage a firm can gain by increasing the scale of production leading to lower average costs
45 of 174
Effective Demand
The quantity of a good or service that an individual is both willing and able to buy at a range of prices in a given time period
46 of 174
Efficiency
Concerned with the optimal production and distribution of scarce resources
47 of 174
Elastic Demand
When the percentage change in quantity demanded is greater than the percentage change in price
48 of 174
Elastic Supply
When the percentage change in quantity supplied is greater than the percentage change in price
49 of 174
Employment
The use of labor in the economy to produce goods and services
50 of 174
Enterprise
The factor of production that takes a risk in organizing the other three factors of production
51 of 174
Environmental Sustainability
The impact of development or growth where the effect on the environment is small and possible to manage, now and into the future
52 of 174
Equilibrium Price and Quantity
Where the quantity supplied exactly matches the quantity demanded
53 of 174
European Union
An economic and political group of countries in Europe that have free trade with each other
54 of 174
Excess Demand
Where, at the current price, the amount demanded is greater than the amount sellers are willing to supply
55 of 174
Excess Supply
Where, at the current price, the amount supplied is greater than the amount buyers are prepared to purchase
56 of 174
Exchange
The giving up of something that the individual or firm has for something they wish to have but do not possess
57 of 174
Exchange Rate
The price of one currency in terms of another currency
58 of 174
Exports
Goods and services sold abroad
59 of 174
Expansion of Supply
The movement outwards along the supply curve leading to an increase in both price and quantity
60 of 174
External Economies of Scale
The cost advantage firms can gain by increasing the scale of production leading to a fall in average costs
61 of 174
Externality
An effect of an economic activity on a third party
62 of 174
Factor Market
Market in which the services of the factors of production are bought and sold
63 of 174
Factors of Production
The resources in an economy that can be used to make goods and services
64 of 174
Financial Sector
Consists of financial organisations and their products and involves the flow of capital
65 of 174
Fiscal Policy
A policy that uses government spending and taxation to affect the economy as a whole
66 of 174
Fixed Cost
All the costs of the firm that have to be paid even if production is zero
67 of 174
Free Trade Agreement
Free movement of goods and services between countries without any restrictions
68 of 174
Frictional Unemployment
Unemployment caused by time lags when workers move between jobs
69 of 174
GDP Per Capita
GDP divided by the population
70 of 174
Globalization
The expansion of world trade in goods and services, together with capital flows leading to greater international interdependence
71 of 174
Good
A tangible product
72 of 174
Government
A political authority that decides how a country is run and manages its operation
73 of 174
Government Revenue
The source of finance for government spending
74 of 174
GDP
The total value added of goods and services produced in a country in one year
75 of 174
Gross Income
Income received before any taxes are taken or benefits given
76 of 174
Gross Pay
The amount of money that an employee receives before deductions are made
77 of 174
Imports
Goods and services bought from abroad
78 of 174
Income
The reward for the service provided by a factor of production including labour
79 of 174
Income and Wealth Redistribution
Government action, using mainly taxation and benefits to reduce inequalities of income and wealth
80 of 174
Income Tax
A tax levied on personal income
81 of 174
Indirect Tax
A tax on spending, often defined as a tax on goods and services
82 of 174
Individual Demand
The demand for a good or service by an individual consumer
83 of 174
Individual Supply
The supply of a good or service by an individual producer
84 of 174
Inelastic Demand
When the percentage change in price is more than the percentage change in quantity demanded
85 of 174
Inelastic Supply
When the percentage change in price is more than the percentage change in quantity supplied
86 of 174
Inflation
A general increase in price level over time
87 of 174
Insurance Company
Financial institution that guarantees compensation for specified loss, damage, illness or death in return for an agreed premium
88 of 174
Interest Rate
The cost of borrowing and reward for saving
89 of 174
Internal Economies of Scale
A result of the growth of a firm itself, leading to a fall in average costs
90 of 174
International Trade
The exchange of goods and services between countries
91 of 174
Investment
The purchase of capital goods that are used to produce future goods and services
92 of 174
Invisible Hand
Unobservable market forces assist demand and supply of goods in a free market to move automatically to an equilibrium position
93 of 174
Labour
The factor of production that is concerned with the workforce of an economy in terms of both the physical and mental effort involved in production
94 of 174
Labour Force
The number of people who work in the country
95 of 174
Labour Market
Where workers sell their labour and employers buy said labour
96 of 174
Land
The factor of production that is concerned with the natural resources in an economy
97 of 174
Law of Demand
For most products, the quantity demanded varies inversely with its price
98 of 174
Law of Supply
For most products, the quantity supplied varies directly with its price
99 of 174
Less Developed Country
A country with a developing economy, lower GDP per capita, lower levels of industrialization and weaker indicators of well being
100 of 174
Level of Unemployment
The amount of people in the working population who are unemployed
101 of 174
Loss
When a firm's revenue is less than its costs
102 of 174
Market
A way of bringing together buyers and sellers to buy and sell goods and services
103 of 174
Market Demand
The total demand for a good or service found by adding together all individual demands
104 of 174
Market Economy
An economy in which scarce resources are allocated by the market forces of supply and demand
105 of 174
Market Failure
When the market fails to allocate resources in the best interests of society as a whole
106 of 174
Market Force
Factors that determine price levels and the availability of goods and services in an economy without government intervention
107 of 174
Market Supply
The total supply of a good or service as a result of adding together all individual producers' supplies
108 of 174
Medium of Exchange
Anything that sets the standard of value of goods and services acceptable to all parties involved in a transaction
109 of 174
Monetary Policy
A policy which aims to control the total supply of money in an economy to try to achieve the government's economic objectives, particularly price stability
110 of 174
Money
Anything that is generally accepted as a payment for a good or service
111 of 174
Monopoly
A sole producer of a good or service
112 of 174
Monopoly Power
Where a firm has more than 25% of the market share
113 of 174
Mortgage
An agreement with a financial institution to borrow money to purchase a property
114 of 174
Movement along the Demand Curve
When the price changes, leading to a movement up or down the existing demand curve
115 of 174
Multinational Corporation
A firm that has its head office in one country but operations in a number of other countries
116 of 174
National Insurance
A contribution paid by workers and their employers toward the cost of state benefits
117 of 174
Need
Something a consumer has to have to survive
118 of 174
Negative Externality
Harmful effect of an economic activity on a third party
119 of 174
Net Income
Income available after the effect of direct taxes and benefits
120 of 174
Net Pay
The amount of money that an employee is left with after deductions from gross pay are made
121 of 174
Nominal Income
Income in terms of its money value
122 of 174
Oligopoly
When a small number of firms control the large majority of market share
123 of 174
Opportunity Cost
The next best alternative given up when making a choice
124 of 174
Positive Externality
Beneficial effect of an economic activity on third parties
125 of 174
Price
The sum of money you have to pay for a good or service
126 of 174
Price Elasticity of Demand
How responsive demand is to a change in price
127 of 174
Price Elasticity of Supply
How responsive supply is to a change in price
128 of 174
Price Stability
When the general price level stays constant over time or grows at an acceptably low rate
129 of 174
Primary Sector
The direct use of natural resources
130 of 174
Private Sector
Part of the economy that is run by individuals and not the government
131 of 174
Privatization
Transfer of business from the public sector to the private sector
132 of 174
Producer
A person, company or country that makes goods and services
133 of 174
Production
The total output of goods and services produced by a firm or industry in a period of time
134 of 174
Productivity
One measure of the degree of efficiency in the use of factors of production in the production process
135 of 174
Product Market
Market in which final goods and services are offered to consumers, businesses and the public sector
136 of 174
Profit
The amount of money a producer has left after all the costs have been paid
137 of 174
Profit Maximization
Where the differences between total revenue and total cost is greatest
138 of 174
Purchasing Power
The amount of goods and services that a given amount of money will buy
139 of 174
Rate of Inflation
The percentage rise in the general price level over time
140 of 174
Interest Rate
The cost of borrowing money
141 of 174
Rate of Unemployment
The percentage of the county's workforce that are unemployed
142 of 174
Real Income
Income taking the effects of inflation into account
143 of 174
Real Wage Rate
Level of wages adjusted for inflation
144 of 174
Recession
A period of time in which a county's GDP falls for 2 or more consecutive quarters
145 of 174
Salary
A yearly wage divided into monthly parts
146 of 174
Savings
The part of a person's income that is not spent on consumption
147 of 174
Scarce Resources
When there is an insufficient amount of something to satisfy all wants
148 of 174
Seasonal Unemployment
Unemployment caused by a fall in demand during a particular season
149 of 174
Secondary Sector
Concerned with manufacturing or construction
150 of 174
Service
An intangible product
151 of 174
Shift in the Demand Curve
A complete movement of the existing demand curve
152 of 174
Shift in the Supply Curve
A complete movement of the existing supply curve
153 of 174
Social Sustainability
The impact of development or growth that promotes an improvement of quality of life for all, now and into the future
154 of 174
Specialization
The process by which firms concentrate on producing the products they are best at producing
155 of 174
Standards of Living
The social and economic well being of residents in a country
156 of 174
Structural Unemployment
Unemployment caused by a permanent decline of an industry
157 of 174
Subsidy
An amount of money the government gives directly to firms to encourage production and consumption
158 of 174
Substitute
Good or service that can be used in place of another good or service
159 of 174
Supply
The availability and willingness of firms to provide goods and services at each price in a given time period
160 of 174
Supply of Labour
The total number of people who are willing and eligible to supply their labour
161 of 174
Supply-Side Policies
Policy that increases the productive potential which is the ability of the economy to supply more goods and services
162 of 174
Tax
A compulsory payment to the government
163 of 174
Tertiary Sector
All activities in the economy that involve the idea of a service
164 of 174
Total Cost
All the costs of a firm added together
165 of 174
Total Revenue
The total income of a firm from the sale of its goods and services
166 of 174
Trade Union
An organisation of workers that is active on behalf of its members
167 of 174
Unemployment
When workers willing and able to work at the current wage rate are unable to find employment
168 of 174
Unitary Demand/Supply
When the percentage change in quantity is the same as percentage change in price
169 of 174
Unlimited Wants
The infinite desire for something
170 of 174
Variable Costs
All the costs of production that change as output changes
171 of 174
Want
Something that a consumer would like to have but is not needed for survival
172 of 174
Wage Rate
The amoutn of money paid to a worker per unit of time, hourly, daily or weekly or per unit of output
173 of 174
Wealth
The market value of all assets owned by a person, group or country at a specific point in time. A stock of assets
174 of 174

Other cards in this set

Card 2

Front

Something that is expected to provide a benefit to the owner in the future

Back

Asset

Card 3

Front

The cost of producing a unit

Back

Preview of the back of card 3

Card 4

Front

The revenue per unit sold

Back

Preview of the back of card 4

Card 5

Front

The record of all financial transactions between one country and the rest of the world

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Economics resources »