Economics Glossary
Order by
40 terms
Terms | Definitions |
|---|---|
 Needs | the minimum which is necessary for a person to survive as a human being |
| Wants | desires for the consumption of goods and services |
| Land | the physical land and minerals associated with it, such as oil and diamonds |
| Labour | the number of people willing and able to work and the skills that they have |
| Capital | the quantity of capital equipment in an economy, such as machinery and transport |
| Entrepreneurship | the ability of managers to think of new ideas, to manage people and to take risks |
| The law of demand | as price increases, demand decreases and vice versa |
| Effective demand | Want it and is willing / able to buy |
| Latent demand | Want it but is not able to buy |
| Normal Goods | demand increases as consumer income rises |
| Inferior Goods | demand decreases as the level of income increases |
| Substitute Goods | different goods that satisfy the same needs of the consumers and can be used to replace one another |
| Compliments Goods | goods that go well with each other |
| Price Elasticity of Demand | The responsiveness of demand to a change in price |
| Elastic Demand | A change in price results in a greater change in demand |
| Inelastic Demand | A change in price results in a proportionately smaller change in demand |
| Indirect tax | a tax imposed on goods and services rather than on income or profits |
| Direct tax | a tax imposed on the income or profits of the person who pays, it rather than on goods and services |
| Government subsidies | amount of money given to an industry / a group of businesses to support them |
| Private sector | the provision of goods and services by businesses that are owned by individuals or groups of individuals |
| Public sector | government organizations that provide goods and services in the economy |
| Market failure | where markets lead to inefficiency |
| Mixed economy | mixed economy where goods and services are provided by both the private and the public sectors |
| Merit goods | goods which are under-provided by the private sector |
| Public goods | goods that are not likely to be provided by the private sector |
| Monopolies | the exclusive possession or control of the supply or trade in a commodity or service - when there is no competition and only one company is providing the good / service |
| Division of labour | the breaking down of the production process into small parts with each worker allocated to a specific task |
| Specialisation | the production of a limited range of goods by individuals, firms, regions or countries |
| Working population | those people who are in work or seeking work |
| Derived demand | demand that arises because there is demand for another good |
| Minimum wage | a minimum amount per hour which most workers are entitled to be paid |
| Trade unions | organisations that exist to protect the interests of workers. |
| Human Capital | The value of an individual worker to a business |
| Fixed Capital | refers to the factories, offices, shops, machines, tools, equipment and furniture used in the production |
| Working Capital | stocks of raw materials and components that will be used up in the production |
| Capital Intensive | where production relies more heavily on machinery relative to labour |
| Labour Intensive | where production relies more heavily on labour relative to machinery |
| Productivity | the amount of output that can be produced with a given quantity of resources |
| Entrepreneur | an individual who organizes the other factors of production and risks their own money in a business venture |
| Production | a process which involves converting resources into goods or services |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.