igcse economics grossary
ECONOMICS
GLOSSARY
YEARS 10 & 11
A
Term
Definition
Absolute advantage
The ability to produce a good or service at an `absolutely` lower cost.
Absolute or nominal prices The prices that we observe today in terms of today's pounds. Also called nominal or current prices.
Aggregate demand All planned expenditures for the entire economy added together.
Aggregate demand curve Planned purchase rates for all goods and services in the economy at various price levels.
Aggregate supply All planned production for the entire economy added together.
Aggregate supply curve
The relationship between planned rates of total production for the entire economy and the price level.
Asset Anything of value that is owned. Customers' deposits create assets in that the bank holds sums of money, which it can use until customers withdraw them.
Assisted areas These are geographical areas that have been designated by government as needing industrial development; hence they are assisted by having government incentives available to firms.
Average fixed costs Total fixed costs divided by the number of units produced.
Average total costs
Total costs divided by the number of units produced.
Average variable costs
Total variable costs divided by the number of units produced.
B
Balance of payments A summary of transactions concerning visible goods and invisibles - services, investment earnings, and transfers - (the current account) and financial assets (the capital account).
Balance of trade The difference between the value of visible exports and the value of visible imports. Thus a country can be in surplus or in deficit on its visible transactions with one or all countries.
Bankruptcy
The situation when a business entity is unable to meet its debts.
Barriers to entry Barriers that make it either impossible
GLOSSARY
YEARS 10 & 11
A
Term
Definition
Absolute advantage
The ability to produce a good or service at an `absolutely` lower cost.
Absolute or nominal prices The prices that we observe today in terms of today's pounds. Also called nominal or current prices.
Aggregate demand All planned expenditures for the entire economy added together.
Aggregate demand curve Planned purchase rates for all goods and services in the economy at various price levels.
Aggregate supply All planned production for the entire economy added together.
Aggregate supply curve
The relationship between planned rates of total production for the entire economy and the price level.
Asset Anything of value that is owned. Customers' deposits create assets in that the bank holds sums of money, which it can use until customers withdraw them.
Assisted areas These are geographical areas that have been designated by government as needing industrial development; hence they are assisted by having government incentives available to firms.
Average fixed costs Total fixed costs divided by the number of units produced.
Average total costs
Total costs divided by the number of units produced.
Average variable costs
Total variable costs divided by the number of units produced.
B
Balance of payments A summary of transactions concerning visible goods and invisibles - services, investment earnings, and transfers - (the current account) and financial assets (the capital account).
Balance of trade The difference between the value of visible exports and the value of visible imports. Thus a country can be in surplus or in deficit on its visible transactions with one or all countries.
Bankruptcy
The situation when a business entity is unable to meet its debts.
Barriers to entry Barriers that make it either impossible