Term
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Definition
| a good or service that consumers want to have . |
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Term
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Definition
| Average income from the sales of each individual good (total revenue/quantity). |
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Term
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Definition
| When the value of one currency rises in value to another. |
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Term
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Definition
| A record of all financial transactions between the UK and the rest of the world. |
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Term
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Definition
| The machinery and tools used in the creation of goods and services. This could include a factory or a coffee machine. The payment for capital is interest. (This is usually because it is purchased using borrowed money.) |
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Term
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Definition
| A market where a wide variety of producers are competing with each other to supply goods and services. |
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Term
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Definition
| Two goods which are often consumed together. Examples could include strawberries and cream or milk and cereal. |
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Term
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Definition
| A person who purchase goods and services for personal use |
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Term
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Definition
| The quantity of a good or service that consumers are willing and able to buy at a given price and a given time period. |
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Term
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Definition
| Where a single firm dominates the market. A firm is said to have a legal monopoly if it has more than 25% of the market share. |
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Term
Price elasticity of demand (PED) |
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Definition
How responsive a quantity sold is to a change in the price of that good. It is calculated by:
% change in quantity sold
% change in price |
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Term
Price elasticity of supply |
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Definition
How responsive a quantity supplied is to a change in price. It is calculated by:
% change in quantity supplied
% change in price |
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Term
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Definition
| The sector of the economy which focuses on the extraction of raw materials such as coal or timber. |
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Term
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Definition
Output
Input
This could be used to measure the output in relation to the number of workers that a firm employed in a given time period (boxes made/workers employed). |
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Term
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Definition
| Goods or services that can be used to replace one another. |
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Term
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Definition
| A curve showing the amount of a good that a firm with willing to supply at any given price level. |
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Term
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Definition
| The sum of all revenue coming into the business. |
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Term
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Definition
| When a person, business or country focuses on the production of a limited number of products or focuses on a small number of tasks in order to gain greater efficiency. |
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Term
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Definition
| The sector of the economy which focuses on turning raw materials into finished products. |
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Term
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Definition
| The next best alternative foregone when an economic decision is made. For example if you choose to buy an apple you may not have enough money to buy a banana. The opportunity cost of buying the apple is not buying the banana. |
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Term
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Definition
| A need is an item which is essential for survival. For example, water or food. |
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Term
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Definition
| Where the market system fails to allocate resources efficiently. |
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