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Economics - Definitions (everything) > Definitions > Flashcards

Definitions Flashcards

1
Q

Demand

A

The willingness of consumers to buy a good or service over a period of time

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2
Q

Supply

A

The quantity of a good or service that producers are willing and able to sell over a period of time.

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3
Q

Competition

A

The rivalry between firms in the same market.

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4
Q

Economies of scale

A

The reduction in per unit costs that a firm experiences as it grows larger.

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5
Q

Diseconomies of scale

A

The increase in average costs that a firm experiences when it grows too large.

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6
Q

Monopoly

A

A market dominated by a single large firm.

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7
Q

Oligopoly

A

A market dominated by a few large firms.

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8
Q

Business aims

A

The goals of a business, which may include maximizing profit, caring for customers, and engaging in charitable work.

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9
Q

Collusion

A

An agreement between dominant firms in an industry to restrict competition.

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10
Q

Barriers to entry

A

Factors that make it difficult or costly for new firms to enter a market.

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11
Q

Externalities

A

The spillover effects of production or consumption, such as pollution from a factory impacting the health of an area.

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12
Q

Non-price competition

A

Competition based on factors other than price, such as advertising, promotions, and customer service.

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13
Q

Public sector

A

The portion of an economy that is owned and operated by the government, providing goods and services to the public.

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14
Q

Private sector

A

The portion of an economy that is owned and operated by individuals or companies, seeking to maximize profits.

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15
Q

Privatisation

A

The act of selling a business controlled by the government in the public sector to individuals in the private sector

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16
Q

Mixed economy

A

An economic system that relies on both the public and private sectors to provide goods and services.

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17
Q

Market Failure

A

An inefficient distribution of goods and services in a free market.

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18
Q

The free rider problem

A

The exploitation of a common resource without contributing to its maintenance or upkeep.

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19
Q

Total revenue

A

The total income earned from selling a good or service

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20
Q

Profit

A

The excess of revenue over costs.

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21
Q

Labour

A

The human element involved in the process of production.

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22
Q

Division of labour

A

The breaking down of the production process into specialized tasks for individual workers.

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23
Q

Labour market

A

The market where employers seek to hire the best employees and where employees seek the most satisfying jobs.

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24
Q

Derived demand

A

Demand for one good or service that is influenced by the demand for another good or service.

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25
Q

Price elasticity of demand

A

The responsiveness of demand to changes in price.

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26
Q

Inelastic demand

A

A situation in which a change in price results in a smaller change in the quantity demanded.

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27
Q

Price elasticity of supply

A

The responsiveness of supply to changes in price.

28
Q

Production possibility curve

A

A graph showing the combination of goods that can be produced with all available resources.

29
Q

Trade unions

A

Organizations that advocate for the rights and interests of workers, such as by negotiating with employers for higher wages and improved working conditions.

30
Q

Congestion

A

The overcrowding of a system, such as a road or public transportation, leading to delays and inefficiency.

31
Q

Subsidies

A

Financial assistance provided by the government to a firm in order to increase competition and encourage production.

32
Q

Innovation

A

The development of new or improved goods or services by a firm.

33
Q

Specialisation

A

Production of a limited range of goods by firms or individuals

34
Q

External benefits

A

When the 3rd party benefits from outside the original economic transaction

35
Q

Productivity

A

The rate at which goods are produced and output of goods in relation to time, work, price, money needed to produce

36
Q

Market Forces

A

The supply and demand in a market

37
Q

Unemployment

A

refers to the condition of those that are able to and willing to work but are unable to find a job

38
Q

Economic Growth

A

The increase in the level of output by a nation

39
Q

GDP

A

The total value of all goods and services produced and sold within a year

40
Q

Inflation

A

A continuing rise in prices over a period of time

41
Q

Disinflation

A

Inflation rate is positive but falling

42
Q

Deflation

A

Inflation rate is negative and prices decrease

43
Q

Income inequality

A

Refers to the differences in income that exist between different groups of earners in a society

44
Q

Progressive Tax

A

The proportion of income tax paid rises as the income of tax payer rises

45
Q

Regressive Tax

A

Where the proportion of income paid in tax rises as the income of the tax payer decreases

46
Q

Tailings

A

Waste material left over

47
Q

Tax allowances

A

Amount of money that firms are allowed to offset against tax by the government

48
Q

Fiscal Policy

A

Decisions about government spending, tax and levels of borrowing that affects aggregate demand in the economy

49
Q

Direct Taxes

A

Taxes levied on income earned by firms and individuals

50
Q

Indirect taxes

A

Tax levied on spending (such as VAT tax)

51
Q

Fiscal Deficit

A

Government spending > Government revenue

52
Q

Fiscal Surplus

A

Government Spending < Government revenue

53
Q

Expansionary Fiscal Policy

A

Fiscal measures stimulating aggregate demand in the economy

54
Q

Contractionary Fiscal Policy

A

Fiscal measures reducing aggregate demand in the economy

55
Q

Supply side policies

A

Government measures designed to increase aggregate supply in the economy

56
Q

Monetary policy

A

Use of interest rates & the money supply to control aggregate demand

57
Q

Mortgage

A

Legal arrangement of borrowing money from a financial institution in order to buy property. Money is paid back over a prolonged period of time

58
Q

Quantitative Easing

A

Buying of financial assets (like government bonds) from commercial banks resulting in a flow of money from central banks to commercial banks

59
Q

Balance of Payments

A

Record of all transactions relating to international trade between one country and the rest of the world over 1 year

60
Q

Current Account

A

Where all exports & Imports are recorded

61
Q

Current Balance

A

Difference between total exports and total imports

62
Q

Current Account Surplus

A

Value of exports exceeds value of imports

63
Q

Current Account Deficit

A

Value of Imports exceeds value of exports

64
Q

Balance of Trade

A

Difference between visible exports and visible imports

65
Q

Absolute Poverty

A

Where people don’t have enough resources to meet all their basic human needs

66
Q

Relative Poverty

A

Poverty that’s defined relative to existing living standards for the average individual

Economics - Definitions (everything) (1 decks)

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