IGCSE Eco

• individual supply is the amount that a single firm is willing and able to supply at a specific price
• market supply is the total of all individual supply - the amount that all the firms in the market is willing and able to supply at a specific price
• inflation is a persistent increase in price level over time
• horizontal merger is when two or more firms at the same stages of production in the same industry merge
• vertical merger is when two or more firms at different stages of production in the same industry merge
• conglomerate merger is when two or more firms in different industries merge
• regulations are a set of rules or laws normally imposed by the government to affect the behavior of economic agents in the economy
• Opportunity cost is the next best choice/sacrifice
• Full employment is the lowest unemployment possibility (job vacancies mating the number of unemployment)
• Frictional unemployment is caused by people moving from one job to another.
• Underemployment is where someone has a part-time job that they would rather not have because it does not pay enough money.
• Structural unemployment occurs due to changes in technology, globalisation, automation etc.
• Cyclical unemployment is caused by recessions and depressions
• Inflation is an increase in prices over time
• Government budget - a budget for the government for government expenditure and revenue
• minimum price - a price set by the government above the equilibrium price
• inelastic supply - quantity supplied changes by a smaller percent change than price
• inelastic demand - demand changes by smaller percent changes than price
• elastic supply/demand - quantity supplied/demanded changes by a larger percent change than price
• GDP/head - total national output divided by total population
• monetary policy - governments policy involving taxes and public expenditure affecting total demand or inflating
• fiscal policy - the governments policy involving taxes and public expenditure affecting the total demand or inflation in an economy
• revenue - total amount of money earned by firms for selling products
• PED - percentage change in demand / percentage change in price
• Price


  The amount of money that buyers are willing and able to pay for a good or service