Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Economics / Key Terms > Paper 1 > Flashcards

Paper 1 Flashcards

1
Q

Define consumer

A

A person or organisation that directly uses a good or service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define producer

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Define government

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Define land

A

The natural resources available for production in an economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define labour

A

The workforce available for production in an economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Define capital

A

The man-made aids to production in an economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Define enterprise

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Define scarce resources

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Define unlimited wants

A

The infinite desire for something

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Define economic problem

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Define opportunity cost

A

The next best alternative given up when making a choice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Define economic choices

A

An option for the use of selected scarce resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define economic sustainability

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Define social sustainability

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Define environmental sustainabiltiy

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Define market

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Define primary sector

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Define secondary sector

A

All activities in an economy concerned with either manufacturing or construction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Define tertiary sector

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Define production of goods

A

Involves using raw materials and/or semi-finished goods to make a whole good, commonly called manufacturing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Define production of services

A

The process of providing a service to a consumer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Define factor market

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Define product market

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Define specialisation

A

The process by which individuals, firms, regions and countries concentrate on producing what they are best at

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Define exchange
The giving up of something that an individual or firm has in return for something they wish to have, but do not possess
26
Define demand
The willingness and ability to purchase a good or service at the given price in a given time period
27
Define demand curve
A graph showing how the demand for a product varies with changes in its price
28
Define price elasticity of demand
The responsiveness of quantity demanded to a change in price of a product
29
Define elastic demand
When the percentage change in quantity demanded is greater than the percentage change in price
30
Define inelastic demand
When the percentage change in quantity demanded is less than the percentage change in price
31
Define supply
The willingness and ability of firms to provide goods and services at each price in a given time period
32
Define supply curve
A graph showing how the supply of a product varies with changes in its price
33
Define price elasticity of supply
The responsiveness of quantity supplied to a change in the price of a product
34
Define elastic supply
When the percentage change in quantity supplied is greater than the percentage change in price
35
Define inelastic supply
When the percentage change in quantity supplied is less than the percentage change in price
36
Define price
The sum of money which has to be paid for a good or service
37
Define equilibrium price and quantity
Where the quantity supplied exactly matches the quantity demanded
38
Define determination of price
The interaction of the market forces of supply and demand to establish the general level of prices for a good or service
39
Define allocation of resources
How scarce resources are distributed among producers and how scarce goods and services are allocated among consumers
40
Define market forces
The factors that determine price levels and the availability of goods and services in an economy without government intervention
41
Define competition
Where different firms are trying to sell a similar product to a consumer
42
Define monopoly
A sole producer or seller of a good or service
43
Define oligopoly
Where a small number of firms control the majority of the market
44
Define production
The total output of goods and services produced by a firm or an industry in a period of time
45
Define productivity
The output per unit of input
46
Define total cost
All the costs of the firm added together
47
Define average cost
The cost of producing a unit of output
48
Define total revenue
The total income of the firm from the sale of its goods and services
49
Define average revenue
The revenue per unit sold
50
Define economies of scale
The cost advantages a firm can gain by increasing the scale of production
51
Define labour market
Where workers sell their labour and employers buy the labour
52
Define gross pay
The amount of money that an employee earns before any deductions are made
53
Define net pay
The amount of money that an employee is left with after deductions are made from gross pay
54
Define income tax
A tax levied on personal income
55
Define national insurance
A contribution paid by workers and their employers toward the cost of state benefits
56
Define pension
A fixed amount paid at regular intervals to a person or their surviving dependents
57
Define money
Anything that is acceptable as a means of payments for goods and services
58
Define medium of exchange
Anything that sets the standard of value of goods and services acceptable to all parties involved in a transaction
59
Define financial sector
Consists of financial organisations and their products and involves the flow of capital
60
Define banks
Financial institutions licensed to receive deposits and make loans
61
Define building societies
Mutual financial organisations that are owned by their members
62
Define insurance
A contract in which an individual or organisation receives financial protection or reimbursement against losses, from an insurance company
63
Define interest rates
The cost of borrowing money
64
Define saving
The part of an individual's income which is not spent on consumption
65
Define borrowing
Receiving something of value in exchange for an obligation to pay it back at a specified time in the future
66
Define investment
The purchase of capital goods that are used to produce goods and services. It is also an asset purchased to provide an income in the future and/or to be sold for profit

Economics / Key Terms (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions