Edexcel Economics 1. Introduction to Economics

Description

Term

When a percentage change in price causes a change in the quantity demanded of the exact same percentage

The situation of people having unlimited wants in the face of limited resources

Products bought by consumers for their own use and enjoyment

The manner in which the profits of selling goods and services affects their supply and demand

What has a coefficient of infinity?

Where a desire to buy a product is not backed up by the ability to pay for it

When people work and become skilled at specific tasks

What has a coefficient of one?

The study of the interrelationships between economic variables at an aggregate (economy-wide) level

The situation where an individual gains less additional utility from consuming a product the more of it is consumed

Description

Term

A product that is both excludable and rivalrous

Natural resources that cannot be replaced once used

The study of the production, distribution, and consumption of wealth in human society

A decrease in demand coupled with a rise in price

Those resources used in the production process

When a percentage change in price causes no change in the quantity demanded

The function of money that allows for the value of different goods and services to be compared

A product the consumption of which is considered desirable due to its positive effects on consumers and thus subsidised or provided free by government such as healthcare

The amount of satisfaction someone receives from consuming a product

Something that humans do not have to produce but which they can consume without opportunity cost