Economics Definitions 0.0 / 5 ? EconomicsKEY TERMSIGCSEEdexcel Created by: harrywilcox16Created on: 31-03-16 12:49 ADVALOREM TAX Tax levied as a percentage of the price of a good 1 of 24 AGGREGATE DEMAND Total demand in the economy including consumption, investment, government expenditure and exports minus imports 2 of 24 ANTI-COMPETITIVE PRACTICES An attempt by firms to prevent or restrict competition 3 of 24 ASSISTED AREAS Areas designated as having problems by the UK or EU and are eligible 4 of 24 AVERAGE COSTS The cost per unit of output; it is equal to total cost divided by outout 5 of 24 BACKWARD VERTICAL INTEGRATION Merging with a firm that operates in the previous stage of production 6 of 24 BALANCE OF PAYMENTS A record of all transactions relating to international trade 7 of 24 BALANCE OF TRADE The difference between visible exports and visible imports 8 of 24 BARRIERS TO ENTRY Obstacles that may discourage a firm from entering a market 9 of 24 BASE RATE The rate of interest set by the MPC which influences all other rates in the economy 10 of 24 BASIC ECONOMIC PROBLEM Allocation of country's resources between competing uses that represent infinite wants 11 of 24 BOOM The peak of the economic cycle where GDP is growing at its fastest 12 of 24 BUDGET The government's spending and revue plans for the next year 13 of 24 BUDGET DEFICIT The amount by which government spending exceeds government revenue 14 of 24 BUDGET SURPLUS The amount by which government revenue exceeds government spending 15 of 24 CAPITAL INTENSIVE Where production relies more heavily on machinery than labour 16 of 24 CARTEL Where a group of firms or countries join together to agree on pricing or output levels in the market 17 of 24 CHOICE Deciding between alternative uses of scarce resources 18 of 24 COLLUSION Agreements between firms to restrict competition 19 of 24 COMPETITION The rivalry that exists between firms when trying to sell goods to the same group of customers 20 of 24 COMPETITION COMMISSION A government body that carries out investigations into mergers and markets where there may be some consumer exploitation 21 of 24 COMPLEMENTARY GOODS Goods that are purchased together because they are consumed together 22 of 24 CONGLOMERATE MERGER The merging of firms in completely different business activities 23 of 24 CONSUMER PRICE INDEX A measure of the general price level; used in the UK and across the eurozone 24 of 24
Comments
No comments have yet been made