AQA AS Economics All Definitions Exam Graded
A+ Latest % Correct
ACCELERATOR - ANSWER: A CHANGE IN THE LEVEL OF INVESTMENT IN NEW CAPITAL
GOODS IS INDUCED BY A CHANGE IN THE RATE OF GROWTH OF NATIONAL INCOME
OR AGGREGATE DEMAND
ACTUAL OUTPUT - ANSWER: LEVEL OF REAL OUTPUT PRODUCED IN THE ECONOMY
IN A PARTICULAR YEAR, NOT TO BE CONFUSED WITH THE THE TREND LEVEL
OUTPUT. THE TREND LEVEL OUTPUT IS WHAT THE ECONOMY IS CAPABLE OF
PRODUCING WHEN WORKING AT FULL CAPACITY. ACTUAL OUTPUT DIFFERS FROM
THE TREND LEVEL OF OUTPUT WHEN THERE ARE OUTPUT GAPS
AGGREAGTE SUPPLY - ANSWER: THE LEVEL OF REAL NATIONAL OUTPUT THAT
PRODUCERS ARE PREPARED TO SUPPLY AT DIFFERENT AVERAGE PRICE LEVELS
AGGREGATE DEMAND - ANSWER: THE TOTAL PLANNED SPENDING ON REAL OUTPUT
PRODUCED WITHIN THE ECONOMY
AVAILABILITY OF CREDIT - ANSWER: FUNDS AVAILABLE FOR HOUSEHOLDS AND
FIRMS TO BORROW
BALANCE OF PAYMENTS - ANSWER: A RECORD OF ALL CURRENCY FLOWS INTO AND
OUT OF A COUNTRY IN A PARTICULAR TIME PERIOD
BALANCE OF PAYMENTS EQUILIBRIUM - ANSWER: OCCURS WHEN THE CURRENT
ACCOUNT MORE OR LESS BALANCES OVER A PERIOD OF YEARS
BALANCE OF TRADE - ANSWER: THE DIFFERENCE BETWEEN THE MONEY VALUE OF A
COUNTRY'S IMPORTS AND EXPORTS. BALANCE OF TRADE IS THE LARGEST
COMPONANT OF A COUNTRYS BALANCE OF PAYMENTS ON CURRENT ACCOUNT
BALANCE OF TRADE DEFICIT - ANSWER: THE MONEY VALUE OF A COUNTRYS
IMPORTS EXCEEDS THE MONEY VALUE OF ITS EXPORTS
BALANCE OF TRADE IN GOODS - ANSWER: THE PART OF THE CURRENT ACCOUNT
MEASURING PAYMENTS FOR EXPORTS AND IMPORTS OF GOODS. THE DIFFERENCE
BETWEEN THE TOTAL VALUE OF EXPORTS AND THE TOTAL VALUE OF IMPORTS OF
GOODS IS SOMETIMES CALLED THE 'BALANCE OF VISIBLE TRADE'
COMPLEMENTARY GOOD - ANSWER: A GOOD IN JOINT DEMAND OR A GOOD WHICH
IS DEMANDED AT THE SAME TIME AS THE OTHER GOOD.
COMPOSITE DEMAND - ANSWER: DEMAND FOR A GOOD WHICH HAS MORE THAN
ONE USE
, CONCENTRATED MARKET - ANSWER: A MARKET CONTAINING VERY FEW FIRMS IN
THE EXTREME ONLY ONE FIRM.
CONCENTRATION RATIO - ANSWER: A RATIO WHICH INDICATES THE TOTAL MARKET
SHARE OF A NUMBER OF LEADING FIRMS IN A MARKET, OR THE OUTPUT OF THESE
FIRMS AS A PERCENTAGE OF TOTAL MARKET OUTPUT
CONDITION OF DEMAND - ANSWER: A DETERMINANT OF DEMAND OTHER THAN
THE GOODS OWN PRICE, THAT FIXES THE POSITION OF THE DEMAND CURVE
CONDITIONS OF SUPPLY - ANSWER: DETERMINANTS OF SUPPLY OTHER THAN THE
GOOD'S OWN PRICE, THAT FIX THE POSITION OF THE SUPPLY CURVE.
CONSUMER GOOD - ANSWER: A GOOD WHICH IS CONSUMED BY INDIVIDUALS OR
HOUSEHOLD TO SATISFY THEIR NEEDS OR WANTS
CONSUMER SOVEREIGNTY - ANSWER: THROUGH EXCERCISING THEIR SPENDING
POWER, CONSUMERS COLLECTIVELY DETERMINE WHAT IS PRODUCED IN A MARKET
CONSUMPTION EXTERNALITY - ANSWER: AN EXTERNALITY GENERATED IN THE
COURSE OF CONSUMING A GOOD OR SERVICE
CROSS-ELASTICITY OF DEMAND - ANSWER: MEASURES THE EXTENT TO WHICH THE
DEMAND FOR A GOOD CHANGES IN RESPONSE TO A CHANGE IN THE PRICE OF
ANOTHER GOOD
DECREASE IN DEMAND - ANSWER: A LEFTWARD SHIFT IN THE DEMAND CURVE
DECREASE IN SUPPLY - ANSWER: A KEFTWARD SHIFT OF THE SUPPLY CURVE
DECREASE IN SUPPLY - ANSWER: A LEFTWARD SHIFT SHIFT OF THE SUPPLY CURVE
DEMAND - ANSWER: THE QUANTITY OF A GOOD, OR SERVICE THAT CONSUMERS
ARE WILLING AND ABLE TO BUY AT GIVEN PRICES IN AGIVEN PERIOD OF TIME. FOR
ECONOMISTS,DEMAND IS ALWAYS EFFECTIVE DEMAND
DEMERIT GOOD - ANSWER: A GOOD, SUCH AS TOBBACO , FOR WHICH THE SOCIAL
COSTS OF CONSUMPTION EXCEED THE PRIVATE COSTS.VALUE JUDGEMENTS ARE
INVOLVED IN DECIDING THAT A GOOD I A DEMERIT GOOD
DERIVED DEMAND - ANSWER: DEMAND FOR A GOOD WHICH IS AN INPUT INTO THE
PRODUCTION OF ANOTHER GOOD
DISECONOMY OF SCALE - ANSWER: AS OUTPUT INCREASES, LONG RUN AVERAGE
COSTS RISES
A+ Latest % Correct
ACCELERATOR - ANSWER: A CHANGE IN THE LEVEL OF INVESTMENT IN NEW CAPITAL
GOODS IS INDUCED BY A CHANGE IN THE RATE OF GROWTH OF NATIONAL INCOME
OR AGGREGATE DEMAND
ACTUAL OUTPUT - ANSWER: LEVEL OF REAL OUTPUT PRODUCED IN THE ECONOMY
IN A PARTICULAR YEAR, NOT TO BE CONFUSED WITH THE THE TREND LEVEL
OUTPUT. THE TREND LEVEL OUTPUT IS WHAT THE ECONOMY IS CAPABLE OF
PRODUCING WHEN WORKING AT FULL CAPACITY. ACTUAL OUTPUT DIFFERS FROM
THE TREND LEVEL OF OUTPUT WHEN THERE ARE OUTPUT GAPS
AGGREAGTE SUPPLY - ANSWER: THE LEVEL OF REAL NATIONAL OUTPUT THAT
PRODUCERS ARE PREPARED TO SUPPLY AT DIFFERENT AVERAGE PRICE LEVELS
AGGREGATE DEMAND - ANSWER: THE TOTAL PLANNED SPENDING ON REAL OUTPUT
PRODUCED WITHIN THE ECONOMY
AVAILABILITY OF CREDIT - ANSWER: FUNDS AVAILABLE FOR HOUSEHOLDS AND
FIRMS TO BORROW
BALANCE OF PAYMENTS - ANSWER: A RECORD OF ALL CURRENCY FLOWS INTO AND
OUT OF A COUNTRY IN A PARTICULAR TIME PERIOD
BALANCE OF PAYMENTS EQUILIBRIUM - ANSWER: OCCURS WHEN THE CURRENT
ACCOUNT MORE OR LESS BALANCES OVER A PERIOD OF YEARS
BALANCE OF TRADE - ANSWER: THE DIFFERENCE BETWEEN THE MONEY VALUE OF A
COUNTRY'S IMPORTS AND EXPORTS. BALANCE OF TRADE IS THE LARGEST
COMPONANT OF A COUNTRYS BALANCE OF PAYMENTS ON CURRENT ACCOUNT
BALANCE OF TRADE DEFICIT - ANSWER: THE MONEY VALUE OF A COUNTRYS
IMPORTS EXCEEDS THE MONEY VALUE OF ITS EXPORTS
BALANCE OF TRADE IN GOODS - ANSWER: THE PART OF THE CURRENT ACCOUNT
MEASURING PAYMENTS FOR EXPORTS AND IMPORTS OF GOODS. THE DIFFERENCE
BETWEEN THE TOTAL VALUE OF EXPORTS AND THE TOTAL VALUE OF IMPORTS OF
GOODS IS SOMETIMES CALLED THE 'BALANCE OF VISIBLE TRADE'
COMPLEMENTARY GOOD - ANSWER: A GOOD IN JOINT DEMAND OR A GOOD WHICH
IS DEMANDED AT THE SAME TIME AS THE OTHER GOOD.
COMPOSITE DEMAND - ANSWER: DEMAND FOR A GOOD WHICH HAS MORE THAN
ONE USE
, CONCENTRATED MARKET - ANSWER: A MARKET CONTAINING VERY FEW FIRMS IN
THE EXTREME ONLY ONE FIRM.
CONCENTRATION RATIO - ANSWER: A RATIO WHICH INDICATES THE TOTAL MARKET
SHARE OF A NUMBER OF LEADING FIRMS IN A MARKET, OR THE OUTPUT OF THESE
FIRMS AS A PERCENTAGE OF TOTAL MARKET OUTPUT
CONDITION OF DEMAND - ANSWER: A DETERMINANT OF DEMAND OTHER THAN
THE GOODS OWN PRICE, THAT FIXES THE POSITION OF THE DEMAND CURVE
CONDITIONS OF SUPPLY - ANSWER: DETERMINANTS OF SUPPLY OTHER THAN THE
GOOD'S OWN PRICE, THAT FIX THE POSITION OF THE SUPPLY CURVE.
CONSUMER GOOD - ANSWER: A GOOD WHICH IS CONSUMED BY INDIVIDUALS OR
HOUSEHOLD TO SATISFY THEIR NEEDS OR WANTS
CONSUMER SOVEREIGNTY - ANSWER: THROUGH EXCERCISING THEIR SPENDING
POWER, CONSUMERS COLLECTIVELY DETERMINE WHAT IS PRODUCED IN A MARKET
CONSUMPTION EXTERNALITY - ANSWER: AN EXTERNALITY GENERATED IN THE
COURSE OF CONSUMING A GOOD OR SERVICE
CROSS-ELASTICITY OF DEMAND - ANSWER: MEASURES THE EXTENT TO WHICH THE
DEMAND FOR A GOOD CHANGES IN RESPONSE TO A CHANGE IN THE PRICE OF
ANOTHER GOOD
DECREASE IN DEMAND - ANSWER: A LEFTWARD SHIFT IN THE DEMAND CURVE
DECREASE IN SUPPLY - ANSWER: A KEFTWARD SHIFT OF THE SUPPLY CURVE
DECREASE IN SUPPLY - ANSWER: A LEFTWARD SHIFT SHIFT OF THE SUPPLY CURVE
DEMAND - ANSWER: THE QUANTITY OF A GOOD, OR SERVICE THAT CONSUMERS
ARE WILLING AND ABLE TO BUY AT GIVEN PRICES IN AGIVEN PERIOD OF TIME. FOR
ECONOMISTS,DEMAND IS ALWAYS EFFECTIVE DEMAND
DEMERIT GOOD - ANSWER: A GOOD, SUCH AS TOBBACO , FOR WHICH THE SOCIAL
COSTS OF CONSUMPTION EXCEED THE PRIVATE COSTS.VALUE JUDGEMENTS ARE
INVOLVED IN DECIDING THAT A GOOD I A DEMERIT GOOD
DERIVED DEMAND - ANSWER: DEMAND FOR A GOOD WHICH IS AN INPUT INTO THE
PRODUCTION OF ANOTHER GOOD
DISECONOMY OF SCALE - ANSWER: AS OUTPUT INCREASES, LONG RUN AVERAGE
COSTS RISES
