The CIE IGCSE Economics Dictionary

A list of all the vocabulary terms and definitions required for the CIE IGCSE Economics syllabus, updated regularly.

Basic Economic Problem

Resources are scarce. There are finite resources available in relation to the infinite needs and wants that humans have, leading to choices being made.

Economic Good

Where there is an opportunity cost involved in producing the good as it takes scarce resources to produce.

Free Good

One that is abundant in supply which doesn’t require any resources to produce. It is not possible to make a profit from supplying free goods.

Stakeholder

An individual or group who have a particular interest or role in an issue. The main stakeholders in the economy are consumers, producers, workers, and the government.

Economics

The study of scarcity and its implications for resource allocation in society.

Factors of Production

The resources or inputs which are used in the production process to produce output. They are land, labor, capital, and enterprise.

Needs

Something essential for survival e.g. food, shelter, and water.

Wants

Non-essential desires e.g. a yacht, better housing, etc.