AQA GCSE Economics Terms And Definitions - Microeconomics

Average Cost

Cost per unit of production.

Average Revenue

Revenue per unit sold.

Building Society

Mutual financial institution owned by members.

Capital

Human-made aids to production.

Competition

Rivalry among firms for consumer sales.

Consumer

User of goods or services.

Demand

Desire and ability to buy goods or services.

Economic Choice

Allocation of scarce resources.

Economic Problem

Allocation of limited resources to satisfy unlimited wants.

Economies of Scale

Cost advantages from increased production.

Efficiency

Optimal use of scarce resources.

Elastic Demand

Demand sensitive to price changes.

Elastic Supply

Supply responsive to price changes.

Enterprise

Organizes other factors of production.

Equilibrium

Balance of demand and supply.

Good

Tangible product.

Government

Authority managing a country's affairs.

Gross Pay

Earnings before deductions.

Income Tax

Tax on personal income.

Individual Demand

Personal demand for goods or services.

Individual Supply

Personal supply of goods or services.

Inelastic Demand

Demand less sensitive to price changes.

Inelastic Supply

Supply less responsive to price changes.

Information Provision

Government providing data to influence behavior.

Insurance

Premium for compensation against loss.

Labour

Workforce in physical and mental production.

Labour Market

Where labor is bought and sold.

Land

Natural resources.

Law of Demand

Inverse relationship between price and quantity demanded.

Law of Supply

Direct relationship between price and quantity supplied.

Legislation

Laws regulating behavior.

Loss

Negative profit.

Market

Meeting place for buyers and sellers.

Market Demand

Total demand for a good or service.

Market Economy

Allocation of resources by supply and demand.

National Insurance

Contribution for state benefits.

Need

Essential for survival.

Negative Externality

Harmful effect on third parties.

Net Pay

Earnings after deductions.

Oligopoly

Market dominated by few firms.

Opportunity Cost

Value of next best alternative.

Pension

Post-retirement payments.

Positive Externality

Beneficial effect on third parties.

Price Elasticity of Demand

Responsiveness of demand to price changes.

Price Elasticity of Supply

Responsiveness of supply to price changes.

Primary Sector

Extraction of natural resources.

Producer

Maker of goods or provider of services.

Product Market

Final goods or services market.

Production

Output of goods and services.

Regulation

Rules governing behavior.

Scarce Resources

Insufficient to satisfy all wants.

Secondary Sector

Manufacturing and construction.

Service

Intangible product.

Shift of Demand/Supply

Change in entire demand/supply curve.

Specialization

Concentration on producing best-suited products.

State Provision

Government directly providing goods and services.

Subsidy

Government grant to encourage consumption.

Supply

Willingness and ability to provide goods and services.

Supply of Labour

Number of people willing and able to work.

Tax

Mandatory payment to the government.

Tertiary Sector

Service-oriented economic activities.

Total Cost

Sum of all costs.

Total Revenue

Total income from sales.

Unlimited Wants

Infinite desire for goods and services.

Want

Non-essential desire.