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economics
flashcards about economics
35
Economics
10th Grade
12/12/2023

Additional Economics Flashcards

 


 

Cards

Term

                Average revenue 

Definition
Average income from the sales of each individual good (total revenue/quantity). 
Term

              Appreciation

Definition
When the value of one currency rises in value to another.
Term

            Balance of payments

Definition
A record of all financial transactions between the UK and the rest of the world.
Term

Balance of payments (current account) deficit

Definition
A record of all financial transactions between the UK and the rest of the world.
Term

Balance of trade

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.
Term

Barriers to entry

Definition
Circumstances that could prevent a firm from successfully joining a market (selling a particular good or service).
Term

Base rate

Definition
The interest rate set by the bank of England that influences market interest rates.
Term

Budget deficit

Definition
When government spending is greater than tax revenue (spending > tax).
Term

Budget surplus

Definition
When government tax revenue exceeds expenditure (tax > spending).
Term

Building societies

Definition
A financial institution which is entirely owned by its members. It offers banking and other financial services to these members.
Term

Capital

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.)
Term

Commercial banks (also known as high street or retail banks)

Definition
These look to make profits by selling financial services to households and businesses.
Term

Claimant account

Definition
Measures unemployment by the number of individuals claiming unemployment benefit that week.
Term

Competitive market

Definition
A market where a wide variety of producers are competing with each other to supply goods and services.
Term

Complimentary goods

Definition
Two goods which are often consumed together. Examples could include strawberries and cream or milk and cereal.
Term

Consumers

Definition
A person who purchase goods and services for personal use.
Term

Consumer price index (CPI)

Definition

 

Measuring inflation by taking the average weighted price level of a basket of goods and comparing it between years.

Term

Cost push inflation

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.
Term

Current account

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.
Term

Cyclical unemployment (often called demand deficient unemployment)

Definition
Unemployment caused by a lack of demand for goods and services (the economy is in a recession or slump).
Term

Deferred payment

Definition
Agreement between the lender and borrower allowing the borrower to pay for goods immediately and make payments in the future.
Term

Demand

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.

 

Term

Demand curve

 

Definition

 

A curve showing the quantity demanded for a good or service at any given price level.

Term

Demand pull inflation

 

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).

 

Term

De-merit goods

 

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.

 

Term

Depreciation

Definition

When the value of one currency falls in value to another.

 

Term

Deregulation

Definition

The removal of regulations or restrictions on a particular business or industry.

 

Term

Developed countries

 

Definition

A country with a relatively high level of economic growth and mature institutions and infrastructure.

 

Term

Direct taxation

 

Definition

Taxes based on income such as income tax or national insurance contributions.

 

Term

Diseconomies of scale

 

Definition

Where an increase in a firm’s output results in an increase in its average costs.

 

Term

Division of labour

 

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.
Term

Economic activity

Definition
The making, producing, buying, selling or consuming products or services.
Term

Economic resource

Definition
Resources which are scarce. Due to them being limited decisions will have to be made about how they are used within an economy.
Term

Economies of scale

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.
Term

Enterprise/entrepreneurship

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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