Economics

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  • Created by: hannahs
  • Created on: 24-11-16 22:07
Scarcity
resources are limited in supply, e.g raw materials, time
1 of 58
Trade-off
where the selection of one choice results in the loss of another
2 of 58
Opportunity cost
The loss of the next most desired alternative when choosing a particular course of action
3 of 58
Price
The amount of money required to purchase a good or service
4 of 58
Revenue
The value of sales over a time period, to purchase a good or service.
5 of 58
Demand
The quantity of a good or service a consumer would like to buy at a given price in a time period
6 of 58
Price insensitivity
where changing the price of a product leads to a smaller change in demand
7 of 58
Necessity
A good or service that a consumer views as essential
8 of 58
Substitute
A good or service which is a possible alternative to another good or service
9 of 58
Price sensitivity
where changing the price by a certain amount results in a larger change in demand
10 of 58
Stakeholder
groups which are interested in the performance of a business
11 of 58
Shareholder
the owner of a limited company
12 of 58
dividends
the payments made to shareholders from the profits of a company
13 of 58
third party
a group or an individual that is not directly involved in the desicion or action
14 of 58
externalities
the effects of economic decision on individuals and groups outside who are not directly involved in the decision
15 of 58
negative externalities
the costs arising from business activity which are paid by people or organisations outside the firm
16 of 58
positive externalities
those benefits arising from business activity which are experienced outside the firm. The firm receives payment for the benefits received.
17 of 58
profits
the rewards for risk-taking
18 of 58
market share
the quantity sold by a business as a percentage of total sales in a market
19 of 58
competitivness
the strength of a businesses position in the market measured by the market share and profitability
20 of 58
competitive advantage
advantages that a business has over its rivals
21 of 58
social success
the performance of a business which takes account social environment and ethical factors
22 of 58
cash flow
the money coming in and out of a business over a period of time
23 of 58
productivity
the measure of the output per worker or machine per period of time
24 of 58
average cost
the cost of producing each unit of output
25 of 58
consumer confidence
a measure of the extent to which customers are prepared to spend money
26 of 58
inflation
an increase in the general price level, this is measured by CPI
27 of 58
cost of living
a measure of the average cost of basic neccesities
28 of 58
external shock
an unanticipated chage in demand or inflation controlled by factors beyond the control of the country
29 of 58
internal shock
an unanticipated change in demand or inflation caused by factors controlled within the country
30 of 58
tax revenue
money received by the government from people and businesses paying their taxes
31 of 58
exports
goods and services which are sold to other countries and which lead to payments to the UK
32 of 58
imports
goods and services brought from other countries which leads to money going out of the UK
33 of 58
exchange rates
the value of one currency against another
34 of 58
interest rate
the cost of borrowing money, or the returns received on savings
35 of 58
economic activity
the total amount of buying and selling that takes place in an economy over a period of time
36 of 58
monetary policy
the uses of changes on inflation to control inflation
37 of 58
patent
a legal protection for a business's new ideas, this prevents other businesses from stealing ideas from other countries
38 of 58
natural monopoly
where one large business can supply the market with products with lower costs that if the market was supplied by different producers
39 of 58
regulators
independent bodies set up by the government to monitor and regulate business activity
40 of 58
privitisation
the transfer of state owned business to the private sector
41 of 58
gross domestic product
the total value of output produced in an economy in a year
42 of 58
economic growth
the percentage increase in GDP per year
43 of 58
output
the amount of goods and services produced in a period of time
44 of 58
resources
the land labour and machinery used to produce goods and services
45 of 58
investement
spending money on equipment that helps contribute to production
46 of 58
internal growth
occurs when a business increases in size by selling more of its goods and services without taking over or merging with another business
47 of 58
external growth
where a business grows in size due to a merger or a takeover
48 of 58
innovation
the process of transforming an invention into a product that customers will buy
49 of 58
merger
whre two or more firms agree to join together
50 of 58
takeover
when one business buy another
51 of 58
conglomerate merger
occurs when two businesses join which have no common business interest
52 of 58
economies of scale
the factors which cause the average cost or producing something to fall as output rises
53 of 58
bulk-buying
business can gain discounts on large order suppliers
54 of 58
technical economies
reductions in average costs or production due to more advanced machinery
55 of 58
dis-economies of scale
the factors which cause an average cost of production to increase as output increases
56 of 58
monopoly
a business which has a market share of 25% and can influence the market
57 of 58
fiscal policy
when the government adjusts tax rates and spending levels to control the level of economic activity
58 of 58

Other cards in this set

Card 2

Front

where the selection of one choice results in the loss of another

Back

Trade-off

Card 3

Front

The loss of the next most desired alternative when choosing a particular course of action

Back

Preview of the back of card 3

Card 4

Front

The amount of money required to purchase a good or service

Back

Preview of the back of card 4

Card 5

Front

The value of sales over a time period, to purchase a good or service.

Back

Preview of the back of card 5
View more cards

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