IGCSE Economics Chapters 1-5 Key Terms

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Demand
the amount of a good that will be bought at give prices over a period of time
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Exporters
firms that sell overseas
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Market
a set of arrangements allowing buyers and sellers to communicate and exchange goods and services
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Market system / Price mechanism
the automatic determination of prices and the allocation of resources by the operation of markets in the economy
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Price
the amount of money that goods are exchanged for in a transaction
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Supply
the amount of a good that sellers are prepared to sell at given prices over a period of time
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Demand curve
a line drawn on a graph which shows how much of a good will be bought at different prices
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Effective demand
the amount of a good people are willing to buy at given prices over a given period of time backed by the ability to pay
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Inverse relationship (between price and quantity demanded)
when price goes up the quantity demanded falls and when the price goes down the quantity demanded rises
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Complementary goods
goods purchased together because they are consumed together
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Inferior good
a good for which demand will fall if income rises or rise if income falls
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Normal good
a good for which demand will rise if income rises or fall if income falls
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Shift in the demand curve
a movement to the left or the right of the entire demand curve when there is a change in any factor affecting demand except the price
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Substitute goods
goods bought as an alternative to another but perform the same function
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Supply curve
a line drawn on a graph which shows how much of a good sellers are willing to supply at different prices
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Advalorem tax
a tax levied as a percentage of the price of a good
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Indirect taxes
taxes imposed byt he government on spending
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Specific tax
a lump sum tax on the amount sold, per unit for example
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Subsidy
a grant given to producers, usually to encourage production of a certain good
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Other cards in this set

Card 2

Front

firms that sell overseas

Back

Exporters

Card 3

Front

a set of arrangements allowing buyers and sellers to communicate and exchange goods and services

Back

Preview of the back of card 3

Card 4

Front

the automatic determination of prices and the allocation of resources by the operation of markets in the economy

Back

Preview of the back of card 4

Card 5

Front

the amount of money that goods are exchanged for in a transaction

Back

Preview of the back of card 5
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