Economics Unit 1 Key Terms 0.0 / 5 ? EconomicsKey terms/DefinitionsGCSEOCR Created by: a is for aranCreated on: 22-11-15 12:32 The land, sea and everything they contain Land 1 of 41 The human workforce used in production Labour 2 of 41 The manmade resources used in production Capital 3 of 41 Organises the other three factors of production and takes financial risks to make a profit Entrepreneurship 4 of 41 The problem arising from scarce resources and infinite human wants Basic Economic Problem 5 of 41 The next best alternative forgone Opportunity Cost 6 of 41 Resources are allocated by the forces of supply and demand and goods are provided by private individuals and firms Market Economy 7 of 41 Where resources are allocated by the government Command Economy 8 of 41 Resources are allocated by a mixture of supply and demand and government decisions Mixed Economy 9 of 41 The concentration of works, firms, regions or whole economies on producing a narrow range of goods and services Specialisation 10 of 41 The concentration by workers on different stages of production Division of Labour 11 of 41 A place where buyers and sellers come together to agree a price and to exchange goods/services Market 12 of 41 Where there is a single dominant firm in the market Monopoly 13 of 41 When a single firm has at least 25% of the market share in a market Monopoly Power 14 of 41 The quantity of goods consumers are willing and able to purchase at a given price in a given period of time Demand 15 of 41 When the demand for something is based on the demand for another product Derived demand 16 of 41 The responsiveness of quantity demanded to a change in price PED 17 of 41 The quantity firms are willing and able to produce at a given price in a given period of time Supply 18 of 41 The responsiveness of quantity supplied to a change in price PES 19 of 41 A compulsory payment to the government Tax 20 of 41 A tax placed which is a fixed amount of money per unit bought Specific tax 21 of 41 A tax placed which is a variable amount based on a percentage of the price Ad valorem tax 22 of 41 A payment from the government to firms to increase production Subsidies 23 of 41 A legal price set by the government which firms are not allowed to charge below Minimum price 24 of 41 A legal price set by the government which firms are not allowed to charge above Maximum price 25 of 41 Costs which stay the same no matter how much output the firm produces e.g. rent, tools Fixed costs 26 of 41 Costs which change depending on how much output the firm produces e.g. Raw materials Variable costs 27 of 41 The money a firm receives from selling a good Revenue 28 of 41 The money a firm has left after subtracting its costs from its revenue Profit 29 of 41 Output per worker per period of time Productivity 30 of 41 When scarce resources are combined into a product Production 31 of 41 Growth that occurs when one firm joins another through a merger or takeover External Growth 32 of 41 Growth that occurs when a firm uses profit from increased sales to invest in more capital, labour or land Internal Growth 33 of 41 A form of external growth where two firms agree to join together Merger 34 of 41 When one firm gains control over another firm, either with or without the agreement of the second firm Takeover 35 of 41 The interaction between workers (who supply the labour) and firms (who demand the labour) Labour market 36 of 41 The amount a person receives before all deductions are taken into account Gross Income 37 of 41 A persons 'take-home pay' after deductions Net Income 38 of 41 Income paid to labour unadjusted for inflation Nominal income 39 of 41 Income paid to labour adjusted for the effects of inflation Real income 40 of 41 A pay floor set by the government; this makes it illegal for employers to pay workers below that level National minimum wage 41 of 41
Comments
No comments have yet been made