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GCSE OCR Economics > P1 Key Words > Flashcards

P1 Key Words Flashcards

(86 cards)

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1
Q

Good

A

tangible product (can be seen + touched)

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2
Q

Consumer

A

person/organisation that directly uses a good/service

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3
Q

Government

A

political authority that decides how a country is run + manages its operation

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4
Q

Service

A

intangible product (can’t be seen or touched)

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5
Q

Producer

A

person/company/country that makes/grows/supplies goods/services

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6
Q

Production

A

total output of goods + services produced by a firm/industry in a time period

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7
Q

Factors of production

A

resources in an economy that can be used to make goods + services (CELL - capital, enterprise, land and labour)

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8
Q

Labour

A

FoP concerned with workforce of an economy in terms of both physical + mental effort involved in production

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9
Q

Land

A

FoP concerned with natural resources of an economy e.g. farmland + mineral deposits

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10
Q

Capital

A

FoP that relates to human-made aids to production

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11
Q

Interdependence

A

where one group responds to the actions of another

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12
Q

Unlimited wants

A

infinite desire for something

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13
Q

Enterprise

A

FoP that takes a risk in organising the other FoPs

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14
Q

Entrepreneur

A

individual who takes the risk of enterprise

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15
Q

Need

A

something a consumer HAS to have to survive

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16
Q

Scarce resources

A

insufficient amount of something to satisfy all wants

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17
Q

Want

A

something a consumer WOULD LIKE to have, but is not essential for survival

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18
Q

Economic problem

A

how to best use limited resources to satisfy the unlimited wants of people

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19
Q

Opportunity cost

A

next best alternative given up when making a choice

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20
Q

Economic choice

A

option for use of selected scarce resources

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21
Q

Economic sustainability

A

best use of resources in order to create responsible development/growth, now and into the future

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22
Q

Social sustainability

A

impact of development/growth that promotes an improvement in quality of life for all, now and into the future

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23
Q

Environmental sustainability

A

impact of development/growth where the effect on the environment is small + possible to manage, now and into the future

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24
Q

Market

A

a way of bringing together buyers/sellers to buy/sell goods/services

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25
Market economy
economy in which scarce resources are allocated by the market forces of supply + demand
26
Primary sector
direct use of natural resources (e.g extraction of basic materials + goods from land/sea)
27
Secondary sector
all activities in an economy concerned with either manufacturing/construction
28
Tertiary sector
all activities in an economy that involve the idea of a service
29
Factor market
market in which services of FoPs are bought + sold
30
Product market
market in which final goods/services are offered to consumers/businesses/public sector
31
Exchange
giving up of something that the individual/firm has, in return for something they wish to have but do not possess
32
Specialisation
process by which individuals + firms + regions + whole economies concentrate on producing those products that they are best at producing
33
Division of labour
where workers specialise in/concentrate on one area of the production process
34
Demand
willingness + ability to purchase a good/service at the given price in a given time period
35
Law of demand
for most products, QD demands inversely with its price (negative grad/correlation)
36
Individual demand
demand for good/service by an individual consumer
37
Market demand
total demand for good/service - found by adding together all individual demand
38
Movement along the demand curve
when the price changes - leads to movement up/down the existing demand curve
39
Shift of the demand curve
complete movement of existing demand curve outward (right) or inward (left)
40
Tax
compulsory payment to the government
41
Subsidy
amount of money the government gives directly to firms to encourage production + consumption
42
Elastic demand
when % change in quantity demanded > % change in price
43
Inelastic demand
when % change in quantity demanded < % change in price
44
Price elasticity of demand (PED)
responsiveness of quantity demanded to a change in price of the product
45
Law of supply
for most products, QS varies directly with its price
46
Supply
willingness + ability of firms to provide goods/services at each price in a given time period
47
Individual supply
supply of good/service by an individual producer
48
Market supply
total supply of good/service as a result of adding together all individual producers' supplies
49
Movement along the supply curve
when the price changes, leading to a movement up (expansion) or down (contraction) on the existing supply curve
50
Shift of the supply curve
complete movement of existing supply curve either outward (right) or inward (left)
51
Elastic supply
% change in QS > % change in price
52
Inelastic supply
% change in QS < % change in £
53
Price elasticity of supply (PES)
responsiveness of QS to a change in price of the product
54
Price
sum of money - pay for a good/service - determined by interaction of supply/demand
55
acts as a signal to guide allocation of resources, transmission of preferences and rationing
56
Worth
how much you value something
57
Equilibrium price and quantity
QS = QD
58
Determination of price
interaction of free market forces of D + S to establish general price level for good/service
59
Allocation of resources
how scarce resources = distributed among producers + how scarce goods/services are allocated among consumers
60
Market forces
factors that determine £ levels + availability of goods/services in an economy w/o gov intervention
61
Competition
where diff firms are trying to sell a similar product to a consumer - price and non-price competition initially compete to enter a market, to survive in a market or to make a profit
62
Monopoly
sole producer/seller of a good/service
63
Oligopoly
small number of firms control large maj of market share
64
Profit
amount of money a producer has left after all costs have been paid - where total revenue > total cost
65
Productivity
one measure of the degree of efficiency in the use of FoPs in the production process - measured in terms of output/unit of input
66
Average cost (AC)
unit cost of production
67
Total cost (TC)
sum cost of the firm
68
Total revenue (TR)
total income of a firm from the sale of its goods/services
69
Average revenue (AR)
revenue/unit sold
70
Loss
when a firm's revenue is less than its cost - TR
71
Economies of scale
cost advantages a firm can gain by increasing the scale of production - fall in AC - can be external/internal
72
Labour market
factor market where workers sell their labour and employers buy the labour - consists of households' supply of labour and firms' demand for labour
73
Supply of labour
total number of people willing + eligible to supply their labour, inc the unemployed
74
Gross pay
amount of money an employee earns before any deductions are made
75
Income tax
tax levied directly on personal income - tax on person's wages
76
National insurance
contribution paid by workers + employers towards cost of state benefits
77
Net pay
the amount of money that an employee is left with after deductions are made from the gross income
78
Pension
fixed amount paid at regular intervals to a person, usually retired, or their surviving dependants
79
Money
anything that is generally accepted as a means of payment for goods + services
80
Medium of exchange
anything that sets the standard of value of goods/services acceptable to all parties involved in a transaction
81
Financial sector
consists of financial organisations + their products + involves flow of capital
82
Investment
purchase of capital goods used to produce future goods + services OR an asset purchased to provide an income in the future/sold at a profit
83
Interest rate
cost of borrowing money/reward for saving - paid to lender
84
Mortgage
agreement with financial institution to borrow money to purchase a property
85
Building society
mutual financial institution owned by its members - primary objectives are to receive deposits from its members + to lend money for members to purchase property
86
Insurance company
financial institution that guarantees compensation for specified loss/damage/illness/death in return for an agreed premium

GCSE OCR Economics (16 decks)

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