Save
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

GCSE Economics P1

OCR Definitions for Paper 1

TermDefinition
Capital The factor of production that relates to human-made aids to production.
Opportunity cost The cost of the next best alternative given up when making a choice.
Government A political body that decides how a country is run and manages its operation.
Consumer an individual / household that directly uses a good or service
Producer an individual, company or country that makes or supplies a good or service
Land the factor of production that relates to natural resources
Unlimited wants The infinite desire for goods and services consumers would like to have
Economic problem How to best allocate scarce resources in order to satisfy the unlimited wants of people
The factors of production resources used in the production process.
Labour the factor of production that relates to human resources.
Enterprise the factor of production that relates to organisation and risk bearing activity.
Scarce resources When there is an insufficient amount of something to satisfy all wants.
Economic choice An option for the use of selected scarce resources.
Economic sustainability The best use of scarce resources to promote development or growth now and in the future.
Social sustainability The impact of growth or development that promotes an increase in the quality of life for all, now and in the future.
Environmental sustainability When the impact of growth or development on the environment is small and manageable now and in the future.
Market Where buyers and sellers come together in order to buy or sell goods and services.
Primary sector Direct use of natural resources such as extracting basic materials from land and sea.
Secondary sector All activities in an economy that involve manufacturing or construction.
Tertiary sector All activities in an economy that involve a service.
Goods Tangible products ie products that can been seen or touched.
Services Intangible products ie products that cannot been seen or touched.
Factor market Market in which the services of the factors of production are sold.
Product markets Where final goods and services are offered to consumers businesses and the public sector.
Specialisation The process whereby individuals, firms, regions or countries focus on producing what they are best at.
Exchange Giving up of something you have in return for something you do not have.
Demand The quantity of goods/services that consumers are willing and able to buy at a given price, at a given time.
Individual demand The demand for a product by a consumer/individual.
Market demand The demand for a product by all consumers/individuals in a market.
Price elasticity of demand (PED) The responsiveness of quantity demanded to a change in price.
Supply The quantity of goods/services that producers are willing and able to provide to the market at a given price, at a given time.
Individual supply The supply of a product by one producer.
Market supply The supply of a product by all producers in a market.
Movements along the demand or supply curve are caused by changes in price.
Shifts of the demand or supply curve are caused by non-price factors.
Price elasticity of supply (PES) The responsiveness of supply to a change in price.
Price How much you pay for a good or service, determined by demand and supply.
Equilibrium Where demand equals supply.
Worth How much you value something.
Price determination The interaction between demand and supply.
Allocation of resources How scarce resources are distributed to producers and allocated to consumers.
Market forces The forces of demand and supply.
Competition Where different firms in a market are trying to sell similar products to consumers.
Market economy Where the forces of demand and supply determine the allocation of resources.
Monopoly A monopoly exists when a market is dominated by one producer of a good or service.
Oligopoly A few large firms control the majority market share.
Production Total goods or services produced in a period of time.
Productivity Output per unit of input, how efficient a firm is.
Cost The amount of money a producer has to pay for supplying the good or service.
Excess demand The quantity demanded is greater than quantity supplied at the current market price.
Total cost (TC) All costs added together.
Average cost (AC) Total costs divided by total output. Unit cost of production.
Total revenue Total income from the sale of goods and services.
Average revenue Total revenue divided by total output. Revenue per unit sold.
Profit Total revenue minus total costs. Money left over after all costs have been paid.
Loss When total revenue is less than total cost.
Economies of scale Fall in long run average costs due to an increase in the scale of production.
Production Total goods or services produced in a period of time.
Productivity Output per unit of input, how efficient a firm is.
Labour market Workers sell their labour and firms buy their labour.
Determination of wages Interaction of supply of labour and demand for labour.
Supply of labour The amount of workers willing and able to supply their labour (including the unemployed).
Demand for labour Is derived demand due to demand for the good or service the labour produces
Gross pay Earnings before any deductions are taken.
Net pay Earnings after all deductions have been taken.
Income tax A direct tax levied on income.
National insurance contributions Contributions paid by employee and employer to pay towards state benefits.
Pension contributions Contributions paid by employee and employer towards future pension payments.
Money Anything that is generally accepted as a means of payment for goods and services.
Medium of exchange Anything that sets the standard for exchange of goods and services that is acceptable to all parties.
Financial sector Firms that provide financial services.
Interest rates The cost for borrowing and the reward for saving.
Investment The purchase of capital goods.
Financial institutions Banks (central bank and commercial banks), Building societies and insurance companies.
Central bank (Bank of England) The institution responsible for issuing a country’s banknotes, acting as a lender of last resort for other banks, and implementing monetary policy (e.g. setting interest rates).
Commercial (retail) Bank Take deposits from customers individuals and firms and turn them into assets for the bank.
Building societies Mutual financial institution owned by its members.
Insurance company Institution that guarantees to cover for losses in return for a premium.
Created by: victoria.shaw
Popular Economics sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards