Economics key terms

The cost advantages a firm can gain by increasing the scale of production.

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

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

A tangible product.

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

The next best alternative given up when making a choice.

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

An option for the use of selected scarce resources.

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

An intangible product.

The amount of money a producer has left after all costs are paid.

The infinite desire for something.

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

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

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

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

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

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

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

All the costs of the firm added together.

The revenue per unit sold.

A contract, represented by a policy, in which an individual or organisation receives financial protection, or reimbursement against losses, from an insurance company.

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

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

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

The cost of producing a unit of output.

Where workers sell their labour and employers buy the labour.

The part of an individual's income which is not spent on consumption.

Receiving money (or something of value) in exchange for an obligation to pay it back at a specified time in the future.

The purchase of capital goods that are used to produce future goods and services. It is also an asset purchased to provide income in the future and/or to be sold for profit.

The direct use of natural resources in production.

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

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

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

Anything that is acceptable as a means of payment for goods and services. It is a medium of exchange.

A graph showing how demand for a product varies with changes in its price.

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

A tax levied on personal income, tax on a person's wages.

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

The quantity demand varies inversely with the price.

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

A fixed amount paid at regular intervals to a person or their surviving dependents.

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

Mutual financial organisations that are owned by their members.

When the price changes leading to a movement up or down the existing demand curve.

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

A graph showing how the supply of a product varies with changes in its price.

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

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

Where the quantity supplied exactly matches the quantity demanded.

A sole producer or seller of a good or service.

Financial institution licensed to receive deposits and make loans.

The quantity supplied varies directly with price.

The total income of the firm from the sale of its goods and services.

When the price changes leading to a movement up or down the existing supply curve.

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

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

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

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

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

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

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

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

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

A compulsory payment to the government.

When a firm's revenue is less than its costs.

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

The supply of a good or service by an individual producer.

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

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

A complete movement of the existing supply curve to the right or left.

The output per unit of input.

A complete movement of the existing demand curve either to the right or left.

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

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

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

The natural resources available for production in an economy.

The workforce available for production in the economy.

Man-made aids to production in an economy.

The factor of production that involves taking a risk and organising the other three factors of production.

Increase in GDP over time.

The value of output produced within a country in a year.

When people who are willing and able to work can find a job.

When people who are willing and able to work cannot find a job.

A measurement of unemployment using the number of people who claim unemployment-related benefits.

The total number of people who are in the workforce and are without a job.

This describes how income is divided between individuals and households in a country.

A flow of money over time, often as a reward for use of a factor of production.

The monetary value of all the assets owned by an individual person, firm or country at a specific time.

When the general price level either stays the same or rises at a low rate over time.

A sustained increase in the general price level.

The value of an economic variable based on current prices.

The value of an economic variable that takes into account changes in the general price level over time.

A measure of the general price level used to calculate the rate of inflation.

the amount of money the government receives

The total amount of money spent by the government in a given time period.

a tax on income and wealth

A tax on spending which is imposed on the producer but may then be passed on to consumer through an increase in price.

Is when revenue is equal to government spending

Is when revenue is greater than government spending