OCR GCSE Economics Micro Definitions

The gap between scarce resources and the unlimited wants for them.

The forces of supply and demand allocate resources via the price mechanism. All resources are privately owned and there is no government intervention.

The government allocates all resources via the price mechanism. All resources are owned by the government and they control prices.

<p>Some resources are owned and allocated by private individuals and the government owns and allocates others.</p> Signup and view all the answers

<p>The government sector of the economy, where organizations are owned and run by the government.</p> Signup and view all the answers

<p>The sector of the economy where firms are owned and run by private individuals and groups - their main aim is profit maximization.</p> Signup and view all the answers

<p>Resources used in the production process.</p> Signup and view all the answers

<p>Goods used to produce other goods and services.</p> Signup and view all the answers

<p>Having ideas and taking risks, with a reward of profit.</p> Signup and view all the answers

<p>Human input into the production process.</p> Signup and view all the answers

<p>Physical land itself as well as all the natural resources and raw materials above/below the land which are available for production.</p> Signup and view all the answers

<p>The next best alternative forgone when an economic choice is made.</p> Signup and view all the answers

<p>Considers how an economic choice ensures the best and most responsible use of scarce resources so that a firm or economy can keep growing over time.</p> Signup and view all the answers

<p>Considers the impact of development or growth that promotes an improvement in quality of life, now and into the future.</p> Signup and view all the answers

<p>Considers how an economic choice impacts renewable and non-renewable resources, pollution, climate change and the availability of resources, now and into the future.</p> Signup and view all the answers

<p>The direct use of natural resources, such as the extraction of basic materials and goods from the land and sea.</p> Signup and view all the answers

<p>The conversion of raw materials into goods; it includes all manufacturing and construction activities.</p> Signup and view all the answers

<p>The provision of a service.</p> Signup and view all the answers

<p>Where buyers and sellers meet to exchange goods and services.</p> Signup and view all the answers

<p>Where the services of the factors of production are bought and sold.</p> Signup and view all the answers

<p>Where final goods and services are bought and sold.</p> Signup and view all the answers

<p>The demand for a factor of production not for itself, but is dependent on the demand for the product it is used to produce.</p> Signup and view all the answers

<p>The process by which individuals, firms, regions, and whole economies concentrate on producing those products that they are best at producing.</p> Signup and view all the answers

<p>Where each worker concentrates on only one small aspect of the production process.</p> Signup and view all the answers

<p>Where more is produced than is required.</p> Signup and view all the answers

<p>Where a country is able to provide a good or service using fewer resources and at a lower cost than another country.</p> Signup and view all the answers

<p>The number of goods and services buyers are willing and able to buy at a given price at a given time.</p> Signup and view all the answers

<p>The number of goods and services firms are willing and able to provide at a given price at a given time.</p> Signup and view all the answers

<p>Where demand and supply meet at a given price at a given time.</p> Signup and view all the answers

<p>When consumers influence the allocation of resources by producers.</p> Signup and view all the answers

<p>The sum of money you have to pay for a good or service.</p> Signup and view all the answers

<p>How much money it takes a producer to provide a product.</p> Signup and view all the answers

<p>How much you value something.</p> Signup and view all the answers

<p>A measure of the responsiveness of the quantity demanded to a change in price of a product.</p> Signup and view all the answers

<p>A measure of the responsiveness of quantity supplied to a change in price of a product.</p> Signup and view all the answers

<p>A market situation in which there are a large number of buyers (demand) and sellers (supply).</p> Signup and view all the answers

<p>Obstacles that might discourage a firm from entering a market.</p> Signup and view all the answers

<p>The proportion of sale that one business has compared to the total sales in the market.</p> Signup and view all the answers

<p>Where there is only one producer or seller of goods in a market.</p> Signup and view all the answers

<p>Where one firm has a share of 25% of the market or more.</p> Signup and view all the answers

<p>Occurs when key industries are given monopoly status by the government.</p> Signup and view all the answers

<p>A market dominated by a few large firms who control the majority of the market share.</p> Signup and view all the answers

<p>A situation in which two suppliers dominate the market for a good or service.</p> Signup and view all the answers

<p>The process of combining scarce resources to produce a good or service.</p> Signup and view all the answers

<p>Output per worker per period of time.</p> Signup and view all the answers

<p>Where the production of a good or service relies heavily on machinery and equipment rather than labour.</p> Signup and view all the answers

<p>Costs that do not change with output.</p> Signup and view all the answers

<p>Cost that do change with output.</p> Signup and view all the answers

<p>The benefits a firm gets from producing on a large scale, reducing their average unit costs.</p> Signup and view all the answers

<p>When a firm grows too large, increasing their average unit costs.</p> Signup and view all the answers

<p>Where one firm grows in size.</p> Signup and view all the answers

<p>Where all firms within an industry benefit from falling average unit costs due to factors outside the direct control of the firm.</p> Signup and view all the answers

<p>When a business grows by selling more products/services than before.</p> Signup and view all the answers

<p>When a business grows by merging and/or taking over other businesses.</p> Signup and view all the answers

<p>When two businesses agree to join together on a voluntary basis, with the new firm retaining the identities of the old one.</p> Signup and view all the answers

<p>When one business buys sufficient shares of another, often in a hostile way.</p> Signup and view all the answers

<p>Where a firm acquires businesses that provide the raw materials used in their main business.</p> Signup and view all the answers

<p>Where a firm acquires businesses to gain more control of the distribution or supply of their products.</p> Signup and view all the answers

<p>Where a firm acquires businesses at the same part of the supply chain, perhaps leading to a monopoly.</p> Signup and view all the answers

<p>Where a firm acquires a substantial number of unrelated businesses to form a large and highly diversified corporation.</p> Signup and view all the answers

<p>Where trade unions negotiate with employers on behalf of its members to set wage rates and working conditions.</p> Signup and view all the answers

<p>A payment per hour worker and is normally paid on a weekly basis.</p> Signup and view all the answers

<p>Quoted as an annual amount but is usually paid in twelve equal monthly installments.</p> Signup and view all the answers

<p>The amount of money that an employee earns before any deductions are made.</p> Signup and view all the answers

<p>The amount of money that an employee is left with after deductions are made from the gross pay.</p> Signup and view all the answers

<p>The income a person receives that is unadjusted for inflation.</p> Signup and view all the answers

<p>The income a person receives once inflation has been accounted for.</p> Signup and view all the answers

<p>The interaction between workers and employers, made up of the supply and demand of labour.</p> Signup and view all the answers

<p>The total number of workers an employer is willing and able to hire at a given wage rate in a given time period.</p> Signup and view all the answers

<p>The total number of people who are willing and able to supply their labour, including the unemployed, at a given wage rate in a given time period.</p> Signup and view all the answers

<p>A measure of the extent to which labour supply responds to a change in the wage rate in a given time period.</p> Signup and view all the answers

<p>A higher wage rate given to an employee in order to deter them from seeking jobs elsewhere as well as improving their productivity.</p> Signup and view all the answers

<p>A price floor that prevents employers from paying workers below a specific amount.</p> Signup and view all the answers

<p>Anything that sets the value of goods and services acceptable to all parties involved in a transaction.</p> Signup and view all the answers

<p>Anything that is generally accepted as a means of payment for goods and services.</p> Signup and view all the answers

<p>The exchange of goods/services for other goods/services without using money.</p> Signup and view all the answers

<p>The cost of borrowing or the reward for saving.</p> Signup and view all the answers