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
Balance of payments (current account) deficit |
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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 part of the current account that records the sales and purchase of physical items between the UK and the rest of the world. |
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Term
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Definition
| Circumstances that could prevent a firm from successfully joining a market (selling a particular good or service). |
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Term
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Definition
| The interest rate set by the bank of England that influences market interest rates. |
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Term
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Definition
| When government spending is greater than tax revenue (spending > tax). |
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Term
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Definition
| When government tax revenue exceeds expenditure (tax > spending). |
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Term
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Definition
| A financial institution which is entirely owned by its members. It offers banking and other financial services to these members. |
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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
Commercial banks (also known as high street or retail banks) |
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Definition
| These look to make profits by selling financial services to households and businesses. |
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Term
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Definition
| Measures unemployment by the number of individuals claiming unemployment benefit that week. |
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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
Consumer price index (CPI) |
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Definition
Measuring inflation by taking the average weighted price level of a basket of goods and comparing it between years. |
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Term
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Definition
| When inflation is caused by an increase in the costs of production. For example, an increase in wages or the cost of raw materials. |
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Term
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Definition
| The part of the balance of payments which records the exchange of goods and services between the UK and the rest of the world. |
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Term
Cyclical unemployment (often called demand deficient unemployment) |
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Definition
| Unemployment caused by a lack of demand for goods and services (the economy is in a recession or slump). |
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Term
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Definition
| Agreement between the lender and borrower allowing the borrower to pay for goods immediately and make payments in the future. |
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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
A curve showing the quantity demanded for a good or service at any given price level. |
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Term
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Definition
When inflation is caused by an increase in demand for goods and services within an economy (this often occurs during a recovery or boom stages of the economic cycle).
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Term
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Definition
Goods which are worse for the consumer than they perceive and so are over consumed by the market. An example of this would be consumption of fatty and sugary foods.
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Term
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Definition
When the value of one currency falls in value to another.
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Term
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Definition
The removal of regulations or restrictions on a particular business or industry.
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Term
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Definition
A country with a relatively high level of economic growth and mature institutions and infrastructure.
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Term
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Definition
Taxes based on income such as income tax or national insurance contributions.
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Term
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Definition
Where an increase in a firm’s output results in an increase in its average costs.
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Term
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Definition
| When production of a good or service is split into a number of smaller tasks and employees then specialise in completing each of these tasks with the intention of increasing productivity. |
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Term
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Definition
| The making, producing, buying, selling or consuming products or services. |
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Term
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Definition
| Resources which are scarce. Due to them being limited decisions will have to be made about how they are used within an economy. |
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Term
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Definition
| Where an increase in a firm’s output results in a fall in average costs. Note there is not requirement for students to know the relevant diagram for Economies of scale but teachers may choose to use this in order to aid teaching. |
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Term
Enterprise/entrepreneurship |
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Definition
| Individuals who take the factors of production and convert them into goods and services which can be sold for profit. The payment for enterprise is profit. |
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Term
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Definition
| when demand for a good or service is equal to supply. When a market is in equilibrium then the price is likely to be stable |
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Term
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Definition
| refers to the European union as one territory without any internal borders or other regulatory obstacles to the free movement of goods and services |
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Term
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Definition
| where quantity demanded of a good or service exceeds supply, resulting in shortages and higher prices |
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Term
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Definition
| where quantity supplied of a good or service exceeds demand, resulting in shortages and higher prices. |
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Term
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Definition
| where buyers and sellers come together in a market place to negotiate prices. |
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Term
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Definition
| the value of a currency in terms of another |
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Term
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Definition
| goods which are produced within a country and then sold abroad |
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Term
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Definition
| the market for the factors of production land labour and capital |
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Term
| financial economies of scale |
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Definition
| firms being able to take advantage of lower interest rates as a result of their increased size |
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Term
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Definition
| the use of government spending and taxation in order to influences the level of demand within the economy |
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Term
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Definition
| costs which do not change with output for example rent for a shop would be the same regardless of how many shoes it sold over the course of a month |
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Term
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Definition
| trade that takes place without tariffs or other barriers |
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Term
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Definition
| this is caused by imperfect information where workers are unable to find work for their skill set |
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Term
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Definition
| when all those who are fit, able and willing to work in the next two weeks are employed |
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Term
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Definition
| when workers are unable to move to new locations for work |
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Term
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Definition
| the process of growing economic integration between the worlds economies. Goods can be produced anywhere, sold anywhere and the profits stored anywhere globally |
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Term
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Definition
| tangible or physical products |
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Term
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Definition
| when government attempts to influence markets in order to correct market failure |
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Term
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Definition
| where the government choses to provide a good or service for free |
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Term
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Definition
| the value of goods and service produced within an economy within one year |
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Term
| gross domestic product per capita |
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Definition
| the value of goods and services produced within and an economy within and an economy within one year divided by the country's population |
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Term
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Definition
| the pay given to an employee before taxes are deducted. it is the sum of all pay |
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