Edexcel International GCSE (9-1) Economics Review

This set of vocabulary flashcards is based on the Edexcel International GCSE (9-1) Economics textbook, specifically covering the fundamental principles of the market system, the basic economic problem, and economic assumptions.

goods

things that are produced in order to be sold

finite

having an end or a limit

needs

basic requirements for human survival

wants

people’s desires for goods and services

infinite

without limits

factors of production

The four resources used to produce goods: land, labour, capital and enterprise

basic economic problem

allocation of a nation’s scarce resources between competing uses that represent infinite wants

scarce resources

amount of resources available when supply is limited

opportunity cost

cost of the next best alternative given up (when making a choice)

expenditure

spending by a government, usually a national government

capital goods

those purchased by firms and used to produce other goods such as factories machinery, tools and equipment

consumer goods

those purchased by households such as food, confectionery, cars, tablets and furniture

production possibility curve (PPC)

line that shows the different combinations of two goods an economy can produce if all resources are used up

economic growth

increase in the level output by a nation

variables

something that affects a situation in a way that means you cannot be sure what will happen

maximise

to increase something such as profit, satisfaction or income as much as possible

revenue

money that a business receives over a period of time, especially from selling goods or services

enterprises

companies, organisations or businesses

administration

activities involved with managing and organising the work of a company or organisation

fertile soil

ground that is capable of producing crops

health care

activity of looking after people’s health, considered to be an industry

proportion

part of a number or an amount, considered in relation to the whole

vocational

training that teaches you the skills you need to do a particular job

agricultural

practice or science of farming

rational

based on clear thought or reason

irrational

not based on clear thought or reason

commission

amount of money paid to someone according to the value of goods, shares or bonds they have sold

delegate

to give part of your power or work to someone else, usually someone in a lower position than you

humanitarian

concerned with improving bad living conditions and preventing unfair treatment of people

retailer

business that sells goods to members of the public, rather than to shops

Microeconomics

The study of individual markets, looking at how prices are determined by the forces of supply and demand

fracking

shooting a mixture of mostly water and sand under high pressure against rock until it fractures, forcing oil out

Social enterprise

An organisation that operates commercially but aims to maximise improvements in human or environmental well-being