OCR GCSE Economics - 2.1 Key Terms

Market

Any way of bringing together buyers and sellers to buy and sell goods and services

Market economy

An economy in which scarce resources are allocated by the market forces of supply and demand

Primary sector

The direct use of natural resources, such as the extraction of basic materials and goods from land and sea

Secondary sector

All activities in an economy that are concerned with either manufacturing or construction

Tertiary sector

All activities in an economy that involve the idea of a service

Product market

Market in which final goods or services are offered to consumers, businesses and the public sector

Factor market

Market in which the services of the factors of production are bought and sold

Specialisation

The process by which individuals, firms, regions and whole economies concentrate on producing those products that they are best at producing

Exchange

The giving up of something that the individual or firm has, in return for something they wish to have but do not possess

Division of labour

Where workers specialise in, or concentrate on, one area of the production process