IGCSE Econ terms

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absolute poverty

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233 Terms

1

absolute poverty

where people do not have enough resources to meet all of their basic human needs

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2

administration

activities involved with managing in and organising work the work of a company or organisation

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3

aggregate demand

total demand in the economy including consumption, investment, government expenditure and exports mins imports

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4

aggregate supply

total amount of goods and services produced in a country at a given price level in a given price

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5

anti-competitive practices

attempts by firms to prevent or restrict competition

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6

appreciation

where the value of a currency rises due to market forces

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7

assembly plants

factory where parts are put together to make a final product

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8

assets

things or resources belonging to an individual or a business that has value or the power to earn money

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9

austerity

official action taken by a government in order to reduce the amount of money that it spends or the amount that people spend

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10

balance of payments

record of all transactions relating to international trade

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11

balance of trade / visible balance

difference between visible exports and visible imports

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12

barriers to entry

obstacles that might discourage a firm from entering a market

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13

base rate

rate of interest set by government or regional central banks for lending to other banks, which in turn influences other rates in the economy

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14

basic economic problem

allocation of a nation’s scarce resources between competing uses that represent infinite wants

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15

bi-lateral trade agreement

trade deal between only two countries

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16

boom

peak of the economic cycle where GDP is growing at its fastest; time when business activity increases rapidly, so that the demand for goods increases, prices and wages go up, an unemployment falls

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17

boom and bust

when an economy regularly becomes more active and successful and then suddenly falls

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18

budget

government’s spending and revenue plans for the next year

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19

budget deficit

amount by which government spending is greater than government revenue

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20

bulk buying

buying goods in large quantities, which is usually cheaper than buying in small quantities

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21

capital and financial account

that part of balance of payments where flows of savings, investment and currencies are recorded

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22

capital goods

those purchased by firms and used to produce other goods such as factories machinery, tools and equipment

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23

capital intensive

production that relies more heavily on machinery relative to labour

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24

cartel

where a group of firms or countries join together and agree on pricing or output levels in the market

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25

closed shop

company or factory where all the workers must belong to a particular trade union

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26

commodities

product that can be sold to make a profit

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27

competition

rivalry that exists between firms when trying to sell goods to the same group of customers

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28

complementary goods

goods purchased together because they are consumed together

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29

consumer goods

those purchased by households, such as food, confectionery, cars, tablets and furniture

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30

consumer price index

measure of the general price level (excluding housing costs)

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31

consumption

amount of goods, services, energy or natural materials used in a particular period of time

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32

contractionary fiscal policy

fiscal measures designed to reduce demand in the economy

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33

cost-push inflation

inflation caused by rising business costs

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34

costs

expenses that must be met when setting up and running a business

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35

current account

parts of balance of payments where all exports and imports are recorded

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36

current account deficit

when value of imports exceeds the value of exports

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37

current account surplus

when value of exports exceeds the value of imports

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38

current balance

difference between total exports and total imports

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39

cyclical / demand deficient unemployment

unemployment caused by falling demand as a result of a downturn in the economic cycle

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40

de-industrialisation

decline in manufacturing

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41

deflation

period where the level of aggregate demand is falling

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42

demand curve

line drawn on a graph that shows how much of a good will be bought at different prices

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43

demand schedule

table of the quantity demanded of a good at different price levels - can be used to calculate the expected quantity demand

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44

demand-pull inflation

inflation caused by too much demand in the economy relative to supply

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45

depreciation

where the value of a currency falls due to market force

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46

depression

bottom of the economic cycle where GDP starts to fall with significant increases in unemployment

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47

derived demand

demand that arises because there is demand for another good

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48

devaluation

when a government fixes a new lower exchange rate

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49

direct taxes

taxes levied on the income earned by firms and individuals

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50

discretionary expenditure

non-essential spending or spending that is not automatic

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51

diseconomies of scale

rising average costs when a firm becomes too big

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52

disposable income

income that is available to someone over a period of time to spend

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53

diversified

if a company or economy diversifies, it increases the range of goods and services it produces

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54

dividend

part of a company's profit that is divided among the people with shares in the company

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55

division of labour

breaking down of the production process into small parts with each worker allocated to a specific task

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56

downturn

period in the economic cycle where GDP grows, but more slowly

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57

dumping

where an overseas firm sells large quantities of a product below cost in the domestic market

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58

economic growth

increase in the level output by a nation

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59

economies of scale

falling average costs due to expansion

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60

economy

system that attempts to solve the basic economic problem

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61

effective demand

amount of a good people are willing to buy at given prices over a given period of time supported by the ability to pay

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62

elastic demand

change in price results in a greater change in the quantity demanded

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63

elastic supply

change in price results in a proportionately greater change in the quantity supplied

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64

embargo

official order to stop trade with another country

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65

enterprises

companies, organisations or businesses

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66

entrepreneurs

individuals who organise the other factors of production and risk their own money in a business venture

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67

equilibrium price

price at which supply and demand are equal

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68

excess demand

where demand is greater than supply and there are shortages in the market

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69

excess supply

where supply is greater than demand and there are unsold goods in the market

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70

exchange rate

price of one currency in terms of another

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71

excise duty

government tax on certain goods, such as cigarettes, alcoholic drinks and petrol that are sold in the country

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72

expansionary fiscal policy

fiscal measures designed to stimulate demand in the economy

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73

expenditure

spending by a government, usually a national government

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74

exports

goods and services sold overseas

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75

external benefits

positive spillover effects of consumption or production - they bring benefits to third parties

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76

external costs

negative spillover effects of consumption or production - they affect third parties in a negative way

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77

external economies of scale

cost benefits that all firms in an industry can enjoy when the industry expands

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78

factors of production

resources used to produce goods and services, which include land, labour, capital and enterprise

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79

fast-moving consumer good

goods, especially food, that sell very quickly and in large amounts

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80

finite

having an end or a limit

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81

fiscal deficit

amount by which government spending exceeds government revenue

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82

fiscal policy

decisions about government spending, taxation and levels of borrowing that affect aggregate demand in the economy

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83

fiscal surplus

amount by which government revenue exceeds government spending

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84

fit for purpose

usable (by a consumer) for the purpose for which it was intended

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85

fixed capital

stock of 'man-made' resources, such as machines and tools, used to help make goods and services

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86

fixed costs

costs that do not vary with the level of output

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87

foreign exchange market

market where foreign currencies can be bought and sold

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88

free rider

individual who enjoys the benefit of a good but allows others to pay for it

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89

free trade

situation in which the goods coming into or going out of a country are not controlled or taxed

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90

frictional unemployment

when workers are unemployed for a short period of time as they move from one job to another

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91

globalisation

growing interconnection of the world's economies

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92

goods

things that are produced in order to be sold

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93

gross domestic product

market value of all final goods and services produced in a period (usually yearly), an internationally recognised measure of national income

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94

hostile takeover

takeover that the company being taken over does not want or agree to

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95

human capital

value of the workforce or an individual worker

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96

hyperinflation

very high levels of inflation; rising prices get out of control

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97

imports

goods and services bought from overseas

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98

income elasticity of demand

responsiveness of demand to a change in income

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99

income inequality

differences in income that exist between the different groups of earners in society, that is, the gap between the rich and the poor

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100

indirect taxes

taxes levied on spending inelastic demand, such as VAT

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