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S3 exam Flashcards

1
Q

Supply

A

The amount of a good or a service firms or producers are willing to make and cell at different prices

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2
Q

Quantity supplied

A

The amount of a good or service producers are willing and able make and sell in a market

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3
Q

Market supply

A

The amount supplied by all the individual producers competing to supply the product

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4
Q

Rise in supply

A 
Other products becoming less profitable
An increase in resources
Technical progress
Increase in business optimism
Government paying subsidies to producers
Cutting taxes on profit
Fall in costs of employment factors 
Season
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5
Q

Fall in supply

A 
Other products becoming more profitable
Rise in the costs of employing factors
A fall in availability of resources
A fall in business optimism
Government withdrawing subsides
Increasing taxes on profit
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6
Q

Injections

A

This is the category given to any spending in an economy that is not consumer spending

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7
Q

Invesments

A

This is the spending by firms, normally on capital good e.g machinery

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8
Q

Exports

A

The money spent by oversea firms and individuals on British goods

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9
Q

Government spending

A

The spending in the economy of the public sector, determined by government decisions

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10
Q

Leakages

A

This category is given to withdraws of money from the circular flow diagram

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11
Q

Savings

A

Money that consumers save from there income

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12
Q

Imports

A

The amount spent bu UK firms and individuals on foreign goods and services

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13
Q

Taxes

A

The amount of revenue collected from central and local governement

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14
Q

Demand

A

The willingness of a consumer to buy goods and services

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15
Q

Effective demand

A

Consumers must have enough money to buy goods and services they need and want

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16
Q

Quantity demanded

A

Amount of good and services consumers are willing and able to buy

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17
Q

Individual demand

A

The demand of one consumer

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18
Q

Market demand

A

The total demand for that product from all its consumers

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19
Q

Extension of demand

A

Demand rises with a fall in price

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20
Q

Contraction of demand

A

Demand contracts when price rises

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21
Q

Market demand curve

A

The relationship between quantity demanded and price

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22
Q

Ceteris paribus

A

All other factors remain unchanged

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23
Q

Normal good

A

The demand for a product tends to rise when incomes rise

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24
Q

Inferior food

A

The demand tends to fall while incomes rise

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25
Disposiable income
The amount of income left to save or spend after deductions
26
Complementary good
When a good needs an accessories to go with it i.e TV and remote
27
Joint demand
Complementary goods that are worth the same
28
Substitutes
When a purchase can be replaced by a want of another good or service
29
Land
Natural resources
30
Labour
Human effort
31
Capital
Man made resources
32
Enterprise
The eneterpreuneuer who brings all the factors together
33
Rent
Reward for land
34
Wages
Reward for labour
35
Interest
Reward for capital
36
Profit
Reward for enterprise
37
Factors of production
Land, labour, capital, enterprise
38
What are resources not scareced called
Free goods
39
Consumption
Using up goods and services to satisfy our needs and wants
40
Consumer spending is called
Consumer expenditure
41
Capital goods
Man-made resources which help to produce goods and sevices e.g machines
42
Public goods
Goods for the benefit of public e.g street lamps
43
Merit goods
Goods and sevices which the government thinks will benifit the public e.g education, health care
44
Scarcity
Limited resources but unlimited resources
45
Opportunity cost
The sacrifice of the next best alternative choice e.g choosing a mars bar over a dairy milk; the oppetunity cost would be the dairy milk
46
What maximises economic welfare
Satisfying consumers needs and wants
47
Maket
Arrangements that brings together producers and consumers of a good or service so they can engage in exchange at certain price
48
Barter
Producers are willin to exchange other goods and sevices they want fo there owm
49
Demand
The want and wilingness of a consumer to buy goods and sevices
50
Criteris paribus
Meaning that all other factors remain unchanged
51
Rise in demand
``` Change in weather Increase in population Reduction in tax Change in fashion Increases in consumers income ```
52
Fall in demand
``` Change in weather Increase in tax rates Fall in population Change in fashion Increase tax on income ```
53
Disposable income
The amount of income people have to spend or save after taxes on their incomes have been deducted
54
Marginal utility
The satisfaction gained from consuming an extra unit of a good
55
Total utility
The total amount of satisfaction gained from consuming a product in a period of time
56
Diminishing marginal utility
The more we consume of a good, the less wea re willing to pay to get one more unit of it. This is because our satisfaction falls after consuming more than one unit
57
Substitution effect
As price rises or income decreases will replace more expensive items with less costly alternatives
58
Income effect
The change in consumers real income resulting a change in product prices meanin demand for a product also changes
59
Demand curve slope downwards
Law of diminishing marginal utility Income effect Subsitute effect
60
Value added
The difference between the market price paid fo a product by a consumer and the cost of the natural and man-made materials, complainants and resources to make it
61
Productivity
The amount of output that can be produced per unit of output in a certain time
62
Production efficiency
The maximum output for tha maximum cost and therefore maximising profit
63
Short run
The firm will have fixed capsity i.e at least one factor of production is fixed ad cant be expanded
64
Long run
The firm wil be able to vary all the factors of production
65
Total revenue
Total receipts from sales of a given quantity of goods or services Price x quantity
66
Average revenue
The revenue generated per unit of output sold | Total revenue divided by quantity
67
Marginal utility
the additional revenue that will be generated by increasing product sales by one unit Price
68
Cost
The payment by a firm in producing its outputs
69
Fixed costs
Any costs that in the short run don't vary
70
Variable costs
Any costs that tend to vary directly with levels of output
71
Economic growth
This occurs when there is an increase in total output of goods and services over one year period of time using the same or fewer resources
72
How to measure economic growth
National income
73
National income
The value of all goods and services produced in the economy in a year
74
Gross demestic product (GDP)
This measures the goods and sevices that are produced in the UK no matter who owns the resources
75
Inflation
The rate at which the general level of prices for goods and sevices is rising and consequently the purchasing power of currency is falling
76
How to measure REAL NI
REAL NI = NI - inflation
77
Factors effecting living statdards
``` Employment Inflation Taxation Income Interest rates Health care Education Benifit level ```
78
Why do supply curves slope upwards
Higher profit per unit | New firms will enter the market
79
Ways of saving money
ISA, | Regular savings account
80
Ways of borrowing money
Credit cards | Hire purchase
81
Advantage of credit cards
More secure when there is problem with retailer
82
Disadvantage of credit cards
High interest rates
83
Advantage of bank loans
Low interest rates compared to credit cards
84
Disadvantage of bank loans
Pay back more than you borrowed
85
Factors that effect consumer confidence
Changes in governement borrowing | Exchange rate fluctuations
86
Consumer confidence
degree of optimism that consumers feel about the overall state of the economy and their personal financial situation
87
How can the governement improve economic growth
Providing subsidies to businesses, schools and hospitals to improve quality More productivity of people and more jobs result in an increase of productivity which means more money is entering the circular flow

Economics (10 decks)

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