Edexcel A-Level Economics Terms in this set (1993) Absolute advantage When a country's output of a product per unit of input is greater than that of any other country. Absolute poverty When a person does not have the income or wealth to fulfil their basic needs. Aggregate Demand (AD) The to...
edexcel a level economics terms in this set 1993 absolute advantage when a countrys output of a product per unit of input is greater than that of any other country absolute poverty when a
3/30/23, 1:03 Edexcel A-Level Economics Flashcards |
AM Quizlet
Edexcel A-Level Economics
Terms in this set (1993)
When a country's output of a product per unit of input is greater
Absolute advantage
than that of any other country.
When a person does not have the income or wealth to fulfil
Absolute poverty
their basic needs.
The total demand/spending in an economy at a given price level
Aggregate Demand (AD) over a given period of time. Made up of consumption, investment,
government spending and net external demand.
The total amount of goods and services that can be supplied in
Aggregate Supply (AS)
an economy at a given price level over a given period of time.
Aid The transfer of resources from one country to another.
Where the price of a good is equal to the price consumers
Allocative efficiency are willing to pay. This occurs when all resources are
allocated efficiently.
Where buyers have more information than sellers in a market, or
Asymmetric information
vice versa.
Parts of fiscal policy that automatically react to changes in the
Automatic stabilisers
economic cycle.
Average Cost (AC) The cost of production per unit of output. Print
Combine
Average Revenue (AR) The revenue per unit sold. Embed
Report
Where a firm merges with or takes over a firm further back in
Backward vertical integration
the production process.
Balance of payments A record of the international transactions of an economy.
, 3/30/23, 1:03 Edexcel A-Level Economics Flashcards |
AM Quizlet
The official rate of interest set by the central bank (e.g. by
Bank rate
the Monetary Policy Committee of the Bank of England)
Barriers to entry Potential difficulties that make it hard for firms to enter a market.
Barriers to exit Potential difficulties that make it hard for firms to leave a market.
Economic activity that occurs without taxation and government
Black market
intervention.
Budget deficit When government spending exceeds tax revenues.
Budget surplus When tax revenues exceed government spending.
Capital account of the balance of A part of the balance of payments that shows transfers of non-
payments monetary and fixed assets into and out of the economy.
A group of products who collude to limit output in order to
Cartel
keep prices high.
The institution responsible for issuing banknotes in an economy,
Central bank acting as a lender of last resort, and implementing monetary
policy.
Ceteris paribus All other things remaining equal
The flow of national output, income and expenditure
Circular flow of income
between firms and households.
An economy where only the government determines the
Command economy
allocation of resources.
When the opportunity cost of producing a good or service
Comparative advantage
is lower than that of any other country.
Government policy aimed at reducing monopoly power in
Competition policy
order to increase efficiency and to ensure fairness for
consumers.
Concentration ratio A measure of the dominance of firms in a market.
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