O Level Economics Definitions (2010-2023)

These flashcards cover essential definitions in economics, relevant for the O Level curriculum from 2010 to 2023.

Ageing Population

A demographic trend characterized by a decrease in birth rates, a decrease in death rates, and an increase in life expectancy, leading to a higher average age in the population.

Absolute Poverty

A state where individuals lack access to basic necessities such as food, clothing, and shelter, typically defined as living on less than $2 a day.

Commercial Bank

A financial institution that offers services like deposits, loans, and foreign exchange, primarily for profit.

Central Bank

The national bank that oversees monetary policy, issues currency, and manages interest rates, usually government-owned.

Devaluation

A deliberate reduction in the value of a currency under a fixed exchange rate system.

Economic Growth

The increase in the output of goods and services in an economy, typically measured by the rise in real GDP.

Equilibrium Price

The price at which the quantity of goods demanded equals the quantity supplied.

Inflation

A sustained increase in the general price level of goods and services over time, diminishing purchasing power.

Monopoly

A market structure where a single seller dominates the market and sets prices, with high barriers to entry for competitors.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to all without competition and are funded by taxation.

Taxation

The process of collecting money from individuals and businesses by the government to fund public services and infrastructure.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.

Fiscal Policy

Government policy regarding taxation and spending to influence economic conditions.

Price Elasticity of Demand (PED)

A measure of the responsiveness of the quantity demanded to a change in price.

Foreign Aid

Financial assistance given by one country to another, often for humanitarian or developmental purposes.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.