cie igcse economics terms

A situation where there is not enough to staisfy everyone's wants.

Unlimited wants exceed scarce resources.

The economic resources of captial, enterprise, labour and land.

Capable of changing use.

Incapable of moving from one location to another location.

Human-made goods used in production.

Spending on capital goods.

Output per worker per hour.

Risk bearing and decision making in business.

The best alternative forgone.

A product which requires resources to produce it and therefore has an oppirtunity cost.

A product which does not require any resources to make it and so does not have an opportunity cost.

A curve that shows the maximum output of two types of products and combination of those products that can be produced with existing resources and technology

An economy where the government makes the crucial decisions, land and capital are state-owned and resources are allocated by directives.

An economy where cosumers determine what is produced, resources are allocated by the price mechanism and land and capital are privately owned.

An economy in which both the private and public sectors play an improtant role.

The willingness and ability to buy a product.

Total demand for a product.

A rise in the quntity demand caused by a fall in the price of the product itself.

A fall in the quantity demand caused by a rise in the price of the product itself.

A rise in the quntity supplied caused by a fall in the price of the product itself.

A fall in the quantity supplied caused by a rise in the price of the product itself.

The price where demand and supply are equal.

A situation where demand and supply are not equal.

A product whose demand increases when income increases and decreases when income falls.

A product whose demand decreases when income increases and increases when income falls.

A product that can be used in place of another.

A product that is used tofether with another product.

An increase in the average age of the population.

A rise in supply at any given price, causing the supply curve to shift to the right.

A fall in supply at any given price, causing the supply curve to shift to the left.

The average cost of prodution per unit produced. It is found by dividing total cost by output.

Advances in the quality of captial goods and methods of production.

A payment to the government.

Taxes on goods and services, collected by firms on behalf of the government..

A payment by a government to encourage the production or consumption of a product.

A measure of the responsiveness of demand to a change in price.

When demand changes by a greater percentage than the change in price.

When demand changes by a smaller percentage than the change in price.

A measure of the responsiveness of supply to a change in price.

When supply changes by a greater percentage than the change in price.

When supply changes by a smaller percentage than the change in price.

Costs borne by those directly consuming or producing a product.

Benefits received by those directly consuming or producing a product.

The spill-over costs on third parties not directly involved in the consumption and/or production of a product.

The spill-over benefits to third parties not directly involved in the consumption and/or production of a product.

The total costs to a society of an economic activity. This includes private and external costs

The total benefits to a society of an economic activity. This includes private and external benefits

A method of assessing investment projects which takes into account, social costs and benefits.

The concentration on particular products or tasks.

Workers specialising in particular tasks.

An item which is generally acceptable as a means of payment.

Private sector banks which aim to make a profit by providing a range of banking services.

A government owned bank which provides banking services to the government and commercial banks.

An organisation for the sale and purchase of shares and other securities.

Someone who buys shares expecting their price to rise.

Someone who sells shares expecting their price to fall.

The total pay received by a worker.

A payment which an employer agrees to pay a worker.

A minimum rate of wage for an hour's work, fixed by the government for the whole economy.

The difference in wages.

A measure of the responsiveness of demand for labour to a change in the wage rate.

A measure of the responsiveness of the supply of labour to a change in the wage rate.

An association which represents the interest of a group of workers.

Representatives of workers negotiating with employers' associations.

A stock of assets including money held in bank accounts, shares in companies, government bonds, cars and houses.

Income after the deduction of direct taxes.

Expenditure by households on consumer goods and income.

The proportion of household disposable income which in spent.

The proportion of household disposable income that is saved.

A group of firms producing the same product.

Shareholders' liability for the business is limited to the value of the shares they have agreed to buy.

A business owned by one person.

A business organisation of two or more people who are personally responsible for its debts and share its profits.

A business organisation with limited liability which can only sell its shares with the approval of existing shareholders.

A business organisation with limited liability which sells its shares to the general public.

A firm that exists for the benefits of its members.

A business organisation owned by the government which is designed to act in the public interest.

The sale of public sector assets to the private sector.

A tax on the profits of a company.

Costs which do not change with output in the short run.

Costs that change with output.

The time period when all factors of produciton can be changed and all costs are variable.

Making as much profits as possible.

Sacrificing some profit to achieve other goals.

A market structure with the highest level of competition. There are no barries or restriction on the entry into and exit from the market.

The minimum level of profit required to keep a firm in the industry in the long run.

A market with a single supplier of a product.

The merger of firms producing the same product and at the some stage of production.

Eliminating unnecessary equipment and plant to make a firm more efficient.

The merger of one firm with another firm that either provides an outlet for its products or supplies it with raw materials, components or the products it sells.

A merger between firms producing different products.

Lower long run average costs resulting from a firm growing in size.

Lower long run average costs resulting from an industry growing in size.

Higher long run average costs arising from a firm growing too large.

Higher long run average costs arising from an industry growing too large.

A product which the government considers as beneficial and which will be under-consumed if left market forces.

A product which is non-rival and non-excluable and hence needs to be financed by taxation.

The percentage of the labour force who are willing and able to work but are without jobs.

A record of a country's economic transactions with other countries.