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| 4788511910 | Opportunity cost | A cost of choosing one thing over the next best alternative. | 0 | |
| 4788511911 | The economic problem | The idea that resources are scare and wants are unlimited | 1 | |
| 4788511912 | Economy | Where people produce goods and services. | 2 | |
| 4788511913 | Market | Where a group of people willing to exchange goods and services meet. | 3 | |
| 4788511914 | Perfect market | Neither Consumer/producer solely influence the price charged for goods and services | 4 | |
| 4788511915 | Imperfect market | a powerful consumer or producer can influence prices | 5 | |
| 4788511916 | The four factors of production | Land, Capital, Labour, Enterprise | 6 | |
| 4788511917 | Consumer Goods | products bought by consumers to satisfy their wants | 7 | |
| 4788511918 | The two types of consumer goods | durable consumer good which can last a long time and a non-durable consumer good which does not last long. | 8 | |
| 4788511919 | Capital goods | Man made resources produced by labour which can help in the production of other goods and services. | 9 | |
| 4788511920 | Public goods | a good is offered by the government since no private firm would be willing to produce it | 10 | |
| 4788511921 | Merit goods | a good/service offered by the government since it feels that people need them regardless whether they can pay for them | 11 | |
| 4788511922 | Private wealth | goods and services owned by entrepreneurs and people in the private sector | 12 | |
| 4788511923 | Social wealth | goods and services owned by the government in the public sector | 13 | |
| 4788511924 | National wealth | both private and social wealth. | 14 | |
| 4788511925 | Earned income | money earned while working (wage/salary). | 15 | |
| 4788511926 | Unearned income | money generated from assets and wealth (no working required) | 16 | |
| 4788511927 | Resource allocation | how much factors of production are used in the production of a particular good/service. | 17 | |
| 4788511928 | Economic system | Used to answer a countries three economics questions, what, how, and for whom | 18 | |
| 4788511929 | The free market system | both producers and consumers determine what and for whom they produce goods | 19 | |
| 4788511930 | The main aim of entrepreneurs | Profit | 20 | |
| 4788511931 | The price mechanism | used by entrepreneurs to decide what to produce | 21 | |
| 4788511932 | Average product | =total product/units of labour | 22 | |
| 4788511933 | Primary Industry | Raw materials are obtained, farming mostly. | 23 | |
| 4788511934 | Secondary industry | where materials are processed into goods and services, in factories. | 24 | |
| 4788511935 | Tertiary industry | when goods and services are then sold, shops etc. | 25 | |
| 4788511936 | Specialization | when a country is good at producing a certain good/service. | 26 | |
| 4788511937 | Division of Labour | when a workforce is separated for each to do a specific task in producing a good or service. | 27 | |
| 4788511938 | Marginal Product | = Change in total product / change in total labour. | 28 | |
| 4788511939 | The law of diminishing returns | adding more units of factors of production give diminishing results to total product. | 29 | |
| 4788511940 | Increasing returns | when added factors of production increase total output. | 30 | |
| 4788511941 | Fixed costs | costs that do not change as output changes | 31 | |
| 4788511942 | Variable cost | costs that increase per increasing output | 32 | |
| 4788511943 | Total costs | both fixed and variable costs | 33 | |
| 4788511944 | Average costs | total costs/ output | 34 | |
| 4788511945 | Total revenue | the price of goods multiplied by the quantity of goods | 35 | |
| 4788511946 | Average revenue | total revenue / output. | 36 | |
| 4788511947 | Break Even point of production | The point of production when total costs are equal to total revenue | 37 | |
| 4788511948 | Depreciation | capital equipment used in a firm wears out and needs to be replaced. | 38 | |
| 4788511949 | Optimum point of production | the average cost of producing a good/service is at its lowest level possible | 39 | |
| 4788511950 | Increasing returns to Scale | a company doubles its inputs and more than doubles its outputs | 40 | |
| 4788511951 | Diminishing returns to Scale | a company doubles its inputs and less than doubles its outputs | 41 | |
| 4788511952 | Constant returns to Scale | a company both doubles its inputs and outputs. | 42 | |
| 4788511953 | Economies of scale | the average cost of producing a good/service decreases as output increases | 43 | |
| 4788511954 | Diseconomies of scale | occur when the average cost of producing a good/service increases from a firm being inefficient. | 44 | |
| 4788511955 | Financial Economies of scale: | Allow firms to take huge loans and sell shares on stock exchange. | 45 | |
| 4788511956 | Marketing Economies of scale: | Firms can buy items in bulk for discount. | 46 | |
| 4788511957 | Technical Economies: | Firms can be specialized, employing specialist workers and machineries. | 47 | |
| 4788511958 | Risk-Bearing Economies: | Have many suppliers. Are also diversified, meaning that they produce a large number of products and therefore do not rely on only one | 48 | |
| 4788511959 | Entrepreneur | person who combines the factors of production and takes the risk in the company | 49 | |
| 4788511960 | The sole trader/proprietor | business owned and run by a single person who bears all profits/responsibility | 50 | |
| 4788511961 | Partnerships | partners own the company sharing profit/responsibility | 51 | |
| 4788511962 | Cooperatives | owned by workers, share profits and liability equally | 52 | |
| 4788511963 | Corporation | owned by shareholder, limited liability | 53 | |
| 4788511964 | Multi-national | company that operates in more than one country with headquarters in one country | 54 | |
| 4788511965 | The Interest Rate | the Cost of Borrowing Money. | 55 | |
| 4788511966 | Venture capital | money lent to small and risky businesses/firms. | 56 | |
| 4788511967 | The Stock Market | the market where buyers and sellers trade shares. | 57 | |
| 4788511968 | Mortgage | a loan given for buying a property which is to be repaid over a period of 20-30 years. | 58 | |
| 4788511969 | Merger | agreement between two firms to join together and form a new enterprise. | 59 | |
| 4788511970 | Horizontal Integration | two firms in the same stage of industry join together. | 60 | |
| 4788511971 | Vertical integration | firm joins another firm in a previous stage of production | 61 | |
| 4788511972 | 8 Factors that affect the location of firms | Transport, Favour of a specific location, Cheap land, Near labour supply, near raw materials, near market, near power supply, traditional locations. | 62 | |
| 4788511973 | Demand | is the willingness and ability of consumers to buy goods and services. | 63 | |
| 4788511974 | Ceteris Parabis | Means all other things being equal and is used to examine determinants in isolation | 64 | |
| 4788511975 | Complements | goods that come together, are jointly demanded. | 65 | |
| 4788511976 | Substitutes | similar goods where one's change in price affects the others demand oppositely. | 66 | |
| 4788511977 | Contraction of demand | refers to the quantity demanded for a product to fall as price rises. | 67 | |
| 4788511978 | Extension of demand | refers to an increase in quantity demanded with a fall in price | 68 | |
| 4788511979 | Supply | is the amount of goods and services producers are willing to make and sell at a given price. | 69 | |
| 4788511980 | Utility | refers to the satisfaction a consumer gains from buying goods and services | 70 | |
| 4788511981 | Law of diminishing marginal utility | refers to the fact that the more of a commodity a consumer has, the less utility he/she gets from it. | 71 | |
| 4788511982 | Determinants of Supply | Weather, technical progress, changes in costs of factors of production, changes in prices of other commodities | 72 | |
| 4788511983 | Excess demand | refers to the quantity demanded being higher than the quantity supplied | 73 | |
| 4788511984 | Excess supply | refers to the quantity supplied being higher than the quantity demanded | 74 | |
| 4788511985 | Factors of demand | Weather, Changes in people's income, Changes in population, Changes in the prices of other goods, changes in fashion/popularity | 75 | |
| 4788511986 | Equilibrium price | The equilibrium price is the market price where the quantity demanded of a good is satisfied with the quantity supplied | 76 | |
| 4788511987 | Disequilibrium | (Quantity demanded does not equal Quantity supplied) at a given price level | 77 | |
| 4788511988 | Price elasticity of demand | how much a change in price would affect demand. | 78 | |
| 4788511989 | Equation for Price elasticity of Demand | Change in quantity demanded/ % Change in price. | 79 | |
| 4788511990 | Income elasticity of demand | refers to how much a change in income would affect the quantity demanded. | 80 | |
| 4788511991 | YED is bigger than 1 | it's a normal good. | 81 | |
| 4788511992 | YED is negative | the good is an inferior good | 82 | |
| 4788511993 | Cross elasticity of demand | change in the price of one good affects the demand of another good. | 83 | |
| 4788511994 | XED is positive | the two goods are substitutes | 84 | |
| 4788511995 | XED is negative | the two goods are complements | 85 | |
| 4788511996 | Non-price competition | refers to firms creating wants for their products through other methods such as advertising. | 86 | |
| 4788511997 | Perfect competition | firms are productively efficient and operate in an allocatively efficient market. | 87 | |
| 4788511998 | Characteristics of a perfect competitive market | Homogeneous product (same goods), price takers (cannot influence price b/c competition), perfect information, freedom of entry and exit. | 88 | |
| 4788511999 | Advantages of a monopoly | economies of scale, can be efficient and lower prices, better able to afford R&D | 89 | |
| 4788512000 | Disadvantages of a monopoly | increased prices, no choice in product, no incentive to innovate | 90 | |
| 4788512001 | Product differentiation | products that are similar are produced only with slight differences. | 91 | |
| 4788512002 | Normal profit | When profits fall to the point of keeping existing firms in the industry but not high enough to attract new firms in search of high profits. | 92 | |
| 4788512003 | Monopoly | has no competition, has abnormal profits, are the price makers, have barriers to entry, there is imperfect information and non-homogeneous products. | 93 | |
| 4788512004 | Wage | the price of labour | 94 | |
| 4788512005 | Labor market | demand and supply for labour. | 95 | |
| 4788512006 | Productivity | the amount of output that is produced from a given input of resources. | 96 | |
| 4788512007 | Average product of labour | Total output / Total number of employees. | 97 | |
| 4788512008 | Trade union | an organization that represents the worker's interests. | 98 | |
| 4788512009 | Wage differentials | the different salaries every person receives based on abilities and qualifications, dirty jobs, satisfaction, lack of information, immobility, and fringe benefits | 99 |
