A-Level Economics Application Attack

These flashcards cover key concepts in A-Level Economics, focusing on market structures, competition, government involvement, and macroeconomic indicators.

5-firm concentration ratio (CR5)

A measure of market concentration that indicates the market share held by the five largest firms in an industry.

Oligopoly

A market structure characterized by a small number of firms that dominate the market, leading to interdependence in pricing and output decisions.

Price Competition

When businesses compete primarily on the basis of the price they charge for their goods or services.

Non-price Competition

Competition based on factors other than price, such as product quality, features, brand image, and customer service.

Dynamic Efficiency

The ability of an industry to innovate and improve in the long run, often as a result of competition.

Predatory Pricing

Setting prices extremely low in an attempt to eliminate competition and gain market share.

Monopsony

A market structure where there is only one buyer and many sellers, giving the buyer significant power to influence prices.

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market.

Negative Externality

A cost endured by a third party who did not agree to it, often arising from economic activities.

Merit Good

A good that is deemed to be beneficial for individuals and society, which may be underprovided in a free market.

Financial Regulation

Laws and rules that govern the financial industry to maintain the integrity of the financial system.

Fiscal Policy

The use of government spending and taxation to influence the economy.

Globalization

The process by which businesses or other organizations develop international influence, or start operating on an international scale.

Trade Surplus

A situation where a country's exports exceed its imports, resulting in a positive balance of trade.

Demographic Dividend

The economic growth potential that can result from shifts in a population's age structure, mainly when the share of the working-age population is larger than the non-working-age share.