AQA GCSE Economics Terms And Definitions - Microeconomics

- Average Cost: Cost per unit of production.

- Average Revenue: Revenue per unit sold.

- Building Society: Mutual financial institution owned by members.

- Capital: Human-made aids to production.

- Competition: Rivalry among firms for consumer sales.

- Consumer: User of goods or services.

- Demand: Desire and ability to buy goods or services.

- Economic Choice: Allocation of scarce resources.

- Economic Problem: Allocation of limited resources to satisfy unlimited wants.

- Economies of Scale: Cost advantages from increased production.

- Efficiency: Optimal use of scarce resources.

- Elastic Demand: Demand sensitive to price changes.

- Elastic Supply: Supply responsive to price changes.

- Enterprise: Organizes other factors of production.

- Equilibrium: Balance of demand and supply.

- Good: Tangible product.

- Government: Authority managing a country's affairs.

- Gross Pay: Earnings before deductions.

- Income Tax: Tax on personal income.

- Individual Demand: Personal demand for goods or services.

- Individual Supply: Personal supply of goods or services.

- Inelastic Demand: Demand less sensitive to price changes.

- Inelastic Supply: Supply less responsive to price changes.

- Information Provision: Government providing data to influence behavior.

- Insurance: Premium for compensation against loss.

- Labour: Workforce in physical and mental production.

- Labour Market: Where labor is bought and sold.

- Land: Natural resources.

- Law of Demand: Inverse relationship between price and quantity demanded.

- Law of Supply: Direct relationship between price and quantity supplied.

- Legislation: Laws regulating behavior.

- Loss: Negative profit.

- Market: Meeting place for buyers and sellers.

- Market Demand: Total demand for a good or service.

- Market Economy: Allocation of resources by supply and demand.

- National Insurance: Contribution for state benefits.

- Need: Essential for survival.

- Negative Externality: Harmful effect on third parties.

- Net Pay: Earnings after deductions.

- Oligopoly: Market dominated by few firms.

- Opportunity Cost: Value of next best alternative.

- Pension: Post-retirement payments.

- Positive Externality: Beneficial effect on third parties.

- Price Elasticity of Demand: Responsiveness of demand to price changes.

- Price Elasticity of Supply: Responsiveness of supply to price changes.

- Primary Sector: Extraction of natural resources.

- Producer: Maker of goods or provider of services.

- Product Market: Final goods or services market.

- Production: Output of goods and services.

- Regulation: Rules governing behavior.

- Scarce Resources: Insufficient to satisfy all wants.

- Secondary Sector: Manufacturing and construction.

- Service: Intangible product.

- Shift of Demand/Supply: Change in entire demand/supply curve.

- Specialization: Concentration on producing best-suited products.

- State Provision: Government directly providing goods and services.

- Subsidy: Government grant to encourage consumption.

- Supply: Willingness and ability to provide goods and services.

- Supply of Labour: Number of people willing and able to work.

- Tax: Mandatory payment to the government.

- Tertiary Sector: Service-oriented economic activities.

- Total Cost: Sum of all costs.

- Total Revenue: Total income from sales.

- Unlimited Wants: Infinite desire for goods and services.

- Want: Non-essential desire.