Vocabulary Unit 1.0 & Unit 1.1

Question 1

Equilibrium

Answer 1

When consumers buy all of a product that is supplied

Question 2

Scarcity

Answer 2

When demand exceeds supply

Question 3

Elastic Demand

Answer 3

A slight change in price creates a sharp change in demand (highly responsive to change)

Question 4

Inelastic demand

Answer 4

Any change in price has very little effect on demand

Question 5

Supply

Answer 5

Amount of goods/services producer are willing to supply

Question 6

Demand

Answer 6

Quantity of goods / services consumers are willing & able to buy

Question 7

Needs

Answer 7

The basic necessities that an individual must have in order to survive, such as food, water, and shelter

Question 8

Wants

Answer 8

These are the desires of individual customers, i.e., the goods and services that they would like to have (rather than things they need to survive), such as a new smartphone, a family holiday in an overseas location, fresh flowers, or jewellery.

Question 9

Market Structure

Answer 9

Nature and degree of competition among businesses operating in the same industry.

Question 10

Monopoly

Answer 10

A market structure with only one seller of a product with no close substitutes.

Question 11

Oligopoly

Answer 11

A market structure in which there are relatively few sellers, each having an opportunity for a degree of market control.

Question 12

Monopolistic competition

Answer 12

Many firms selling products differentiated from each other by branding or quality not by price.

Question 13

Perfect Competition

Answer 13

A market structure in which there is such a large number of buyers and sellers and where none of them have a significant influence on price.

Question 14

Economics

Answer 14

Social science that focuses on the production, distribution, and consumption of goods and services.

Question 15

Economic Indicators

Answer 15

Measure used to assess, measure, and evaluate the overall state of health of the overall economy.

Question 16

Imperfect Competition

Answer 16

Any economic market that does not meet the rigorous assumptions of a hypothetical perfectly competitive market.

Question 17

Perfect competition

Answer 17

Ideal type of market structure where all producers and consumers have full and symmetric information and no transaction costs.