micro economics

A person or organisation that directly uses a good or service.

A tangible product (a product that can be seen or touched)

A political authority that decides how a country is run and manages its operation.

A person, company/ country that makes, grows or supplies goods and services.

An intangible product

The total output of goods and services produced by a firm or industry in a time period.

The resources in an economy that can be used to make goods and services

The natural resource available for the production in an economy

The man made aids of production in an economy

The workforce available for production in an economy

The factor pf production that involves taking a risk and organising the other three factors in production

How to best use the limited resources to satisfy the unlimited wants of people.

The infinite desire for something

When there is an insufficient amount of something to satisfy all wants.

The next best alternative given up when making a choice.

Something a consumer has to have to survive

Something a consumer would like to have but is not essential for survival

An option for the use of selected scarce resources

The best use of resources in order to create responsible development/growth now and in the future.

The impact of development/ growth that promotes an improvement in the quality of life for all, now and in the future.

The impact of development/ growth where the effect on the environment is small and possible to manage, now and in the future.

A way of bringing together buyers and sellers to buy and sell goods and services.

An economy in which scarce resources are allocated by the market forces of supply and demand.

The direct use of natural resources including extraction of basic materials and goods from land and sea.

All activities in an economy concerned with either manufacturing or construction.

All activities in an economy that involve the idea of service.

Where final goods and services are offered to consumers, businesses and the public sector.

Where the services of the factors of production are bought and sold.

The process by which the individuals, firms, regions and countries concentrate on producing those products that they are best at doing.

The giving up of something that an individual or firms has in return for something they wish to have but do not possess.

Where workers specialise in/ concentrate on, one area of the production process.

The willingness and ability to purchase a good or service at the given price in a given time period.

Quantity demanded varies inversely with the price.

The demand for a good or service by an individual consumer.

The total demand for a good or service found by adding together all individual demands.

A complete movement of the existing demand curve either outwards or inward

When the price changes due to a change in supply leading to a movement up or down the existing demand curve.

An amount of money the government gives directly to firms to encourage production and consumption.

A compulsory payment to the government.

When the percentage change in the quantity demanded is greater than the percentage change in price.

When the percentage change in quantity demanded is less that the percentage change in price.

The responsiveness of quantity demanded to a change in the price of the product.

The ability and willingness of firms to provide goods and services at each price in a given time period.

Quantity supplied varies directly with its price for most products

The supply of a good or service by an individual producer

The total supply of a good or service found by adding together all individual producers’ supplies.

When the price changes, leading to a movement up or down on the existing supply curve (extension or contraction).

The complete movement of the existing supply curve either outward or inward.

When the percentage change in quantity supplied is greater than the percentage change in price

When the percentage change in quantity supplied is less than the percentage change in price.

The responsiveness of quantity supplied to a change in the price of the product.

The sum of money which has to be paid for a good or service

Where the quantity supplied exactly matches the quantity demanded.

The optimal production and distribution of scarce resources.

How scarce resources are distributed among producers, and how scarce goods and services are allocated among consumers

The interaction of the free market forces of demand and supply to establish the general level of price for a good or service.

The factors that determine price levels and the availability of goods and services in an economy without government intervention( free market economy).

Where different firms are trying to sell a similar product to a consumer.

A sole producer or seller of a good or service

Where a small number of firms control the large majority of market share.

The amount of money a producer has left after all the costs have been paid( total revenue is greater than total cost).

A measure of the degree of efficiency in the use of factors of production in the production process. It’s the unit output per the unit input.

The cost of producing a unit. TC/Q=AC

All the costs of the firm added together. TFC+TVC=TC

The total income of a firm from the sale of its goods and services. PxQ=TR

The revenue per unit sold. TR/Q=AR

When the firm’s revenue is less than its costs

The cost advantages a firm can gain by increasing the scale of production, leading to a fall in average costs.

Where workers sell their labour and employers buy the labour : it consists of households’ supply of labour and firms’ demand for labour.

The total number of people willing and eligible to supply their labour, including the unemployed.

The amount of money that an employee earns before any deductions are made.

A tax collected directly on the person’s wages

The amount of money that an employee is left with after deductions are made from the gross income.

A contribution paid by workers and their employers towards the cost of state benefits.

A fixed amount paid at regular intervals to a person ( usually retired )or their surviving dependants

Anything that is generally accepted as a means of payments for goods and services.

Anything that sets the standard of value of goods and services acceptable to all parties involved in a transaction

Consists of financial organisations and their products and involves the flow of capital.

The purchase of capital goods that are used to produce future goods and services. Also an asset purchased to provide an income in the future and/or to be sold at a profit

The cost of borrowing money. The reward for saving.

A mutual financial institution that is owned by its members. Its primary objectives are to receive deposits from its members and to lend money for members to purchase property.

An agreement with a financial institution to borrow money to purchase a property.

Financial institution that guarantees compensation for specified loss, damage, illness or death in return for an agreed premium.