Economics-Key Words 0.0 / 5 ? EconomicsUnit 1 Keywords-How the market worksGCSEOCR Created by: Alice BCreated on: 10-01-14 21:08 Something essential for survival. Need 1 of 34 A desirable item, but not essential for survival. Want 2 of 34 Output per worker, per period of time. Productivity 3 of 34 The next best alternative foregone when making a choice. Opportunity Cost 4 of 34 Where buyers and sellers meet to exchange goods and services. Market 5 of 34 Where all resources are allocated by private individuals and groups. Market Economy 6 of 34 Where all resources are allocated by the government. Planned Economy 7 of 34 Where some resources are allocated by the government, and others by private individuals and groups. Mixed Economy 8 of 34 The government sector of the economy, where organisations are owned and run by the government. Public Sector 9 of 34 The sector of the economy where firms and owned and run by private individuals and groups-their main aim is profit maximisation. Private Sector 10 of 34 When more product is produced than is required. Surplus 11 of 34 A market situation in which there are large numbers of buyers and sellers. Competitive Market 12 of 34 A situation where there is only one firm selling in a market. Monopoly 13 of 34 When a firm has more than 25% of the market share. Monopoly Power 14 of 34 The quantity buyers are willing and able to buy at a given price in a given period of time. Demand 15 of 34 When the consumer is willing and able to buy the good or service. Effective demand 16 of 34 The fall in the quantity demanded due to a rise in price. Contraction of Demand 17 of 34 The increase in quantity demanded due to a fall in price. Extension of Demand 18 of 34 Goods for which the demand falls when income rises. Inferior Goods 19 of 34 The amount of money a firm receives when selling its product. Total Revenue 20 of 34 The quantity a producer is willing and able to produce at a given price in a given period. Supply 21 of 34 The point where demand and supply meet. Equilibrium 22 of 34 A tax placed on a good or service which is a specific amount of money per unit brought. Specific Tax 23 of 34 A tax placed on a good or service which is a percentage of the price. Ad Valorem Tax 24 of 34 The number of goods or services produced by a firm. Output 25 of 34 Costs that do not vary with output. Fixed costs 26 of 34 Costs that vary directly with output. Variable costs 27 of 34 The process of combining scarce resources to make an output. Production 28 of 34 Agreed coming together of two firms. Merger 29 of 34 When one firm seeks to take control of another. Takeover 30 of 34 Occurs when two firms come together through either a merger or a takeover. Integration 31 of 34 When a firm grows in size and so benefits from lower average costs. Internal Economies of Scale 32 of 34 When a whole industry grows in size, so a firm within that industry benefits from lower average costs. External Economies of Scale 33 of 34 A wage level set by the government, which producers cannot legally go below. National Minimum Wage 34 of 34
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