economics mocks key terms
Participation Rate: The percentage of the working-age population actively engaged in the labour market, either employed or seeking work.
Data Centres: Facilities used to house computer systems and associated components, such as servers, to store, manage, and process data.
Monetary Policy: The regulation of money supply and interest rates by a central bank to control inflation, stabilise currency, and promote economic growth.
Fiscal Policy: Government policies on taxation and spending to influence economic activity.
Corporation Tax: A tax imposed on the profits of companies.
Marginal Utility: The additional satisfaction gained from consuming one more unit of a good or service.
Law of Demand: States that as the price of a good decreases, the quantity demanded increases, ceteris paribus.
Law of Supply: States that as the price of a good increases, the quantity supplied also increases, ceteris paribus.
Law of Diminishing Marginal Returns: When additional units of a factor of production are added, the incremental output eventually decreases.
Monopoly: A market structure with a single seller dominating the market with no close substitutes.
Oligopoly: A market structure dominated by a few large firms, often with significant market power.
Perfect Competition: A market structure with many buyers and sellers, identical products, and free entry and exit.
Imperfect/Monopolistic Competition: A market structure where many firms sell similar but differentiated products.
Marginal Revenue: The additional income generated from selling one more unit of a good or service.
Average Revenue: Total revenue divided by the quantity sold, equal to the price per unit in most cases.
Average Cost: Total cost divided by the quantity of output produced.
Long Run: A period during which all factors of production and costs are variable.
Short Run: A period during which at least one factor of production is fixed.
Price Discrimination: Charging different prices to different consumers for the same good or service based on willingness to pay.
Non-Price Competition: Strategies used by firms to attract customers without lowering prices, such as advertising or product differentiation.
Interdependent: When firms’ decisions are influenced by the actions of their competitors, typical in oligopolistic markets.
Industrial Action: Measures taken by employees, such as strikes, to enforce demands regarding working conditions or pay.
Price Elasticity of Demand: A measure of how much the quantity demanded of a good responds to a change in its price.
Income Elasticity of Demand: A measure of how much the quantity demanded changes in response to a change in consumer income.
Comparative Advantage: The ability of a country to produce a good at a lower opportunity cost than another.
Absolute Advantage: The ability of a country to produce more of a good with the same resources than another.
Exports: Goods and services produced in one country and sold to another.
Imports: Goods and services bought by one country from another.
Foreign Direct Investment (FDI): Investment by a company or individual in one country into business interests in another.
Urbanisation: The increase in the proportion of people living in urban areas compared to rural areas.
Balanced Regional Development: Ensuring economic growth is distributed fairly across all regions of a country.
Economy at Full Capacity: When all resources in an economy are fully utilised, and output is at its maximum potential.Þ Opportunity Cost: The value of the next best alternative foregone when making a choice.
Balance of Payments: A record of all economic transactions between residents of a country and the rest of the world.
Inflation: The rate at which the general level of prices for goods and services rises, eroding purchasing power.