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

When a change in one variable causes a change in another variable in the opposite direction

What is shown by the following calculation: quantity of goods sold×price of goods?

What is shown by the following calculation: (%∆QD)/(%∆P)?

An economy in which production is controlled by, and all resources except labour are owned by the state

A product that is both non-excludable and non-rivalrous

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

A third party effect arising from the production and consumption of goods and services for which no appropriate compensation is paid such as pollution

A point at which the level of profit or benefit is exceeded by the cost of investment

When a change in the price of one good provokes a greater change in the demand of another

Description

Term

When a percentage change in price causes an infinite change in the quantity demanded

The function of money that allows for people to save for future wants and needs

Those resources used in the production process

A variable that has an internal cause or origin

A graph showing the maximum output combinations of two products an economy can achieve when all resources are fully and efficiently employed

Where a fall in price increases the real purchasing power of consumers by allowing them to buy more with a given budget

Natural resources that cannot be replaced once used

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

An assessment of something as good or bad depending on one's own standards or priorities

What has a coefficient of infinity?