Year 11 GCSE Economics Revision

Vocabulary flashcards covering Year 11 GCSE Economics revision concepts, definitions, and key terms.

Monopoly

One dominant firm.

Monopoly Power

Ability to influence price.

Money as a Medium of Exchange

Money is used to buy and sell goods and services.

Fixed Cost

Costs that stay the same regardless of output (for example, rent).

Variable Cost

Costs that change with output (for example, raw materials).

Revenue

Money from sales.

Profit

Revenue minus total costs.

Good

A physical item.

Service

An activity provided to customers.

4 Factors of Production

Land, labour, capital and enterprise (LLCE).

Economies of Scale

Average cost per unit falls as a firm increases production.

Diseconomy of Scale

A factor, such as poor communication in a large firm, that can increase average costs.

Demand

Quantity consumers are willing and able to buy at a given price.

Equilibrium

When quantity demanded equals quantity supplied.

Indirect Tax Increase

Causes costs to rise, supply to fall, and the market price usually to rise.

The Economic Problem

Resources are scarce but human wants are unlimited.

Opportunity Cost

The next best alternative given up when making a choice (for example, spending $\pounds 20$ on trainers means giving up the next best $\pounds 20$ use).

Negative Effect of Monopoly Power

Monopolies may charge higher prices to consumers.

Benefit of Monopoly Power

Higher profits can fund investment and research.

Equilibrium Price

The price determined where demand equals supply.

Complementary Product

A product where if its price rises, demand for the other product may fall.

Productivity

Higher productivity lowers costs, increases supply and can lower price.

Movement along vs Shift of Demand

An own-price change results in a movement along the demand curve, whereas other factors cause a shift of demand.