things that are produced in order to be sold

having an end or limit

without limits

allocation of a nation's scarce resources between competing uses that represent infinite want

amount of resources when the supply is limited

cost of the next best alternative given up (when making a choice)

spending by a government, usually a national government

those purchased by firms and used to produce goods such as factory machinery, tools, and equipment

those purchased by households such as food, confectionary, cars, tablets, and furniture

line which shows the different combinations of two goods an economy can produce if all resources are used up

increase in the level of output by a nation

to increase something such as profit or income as much as possible

money that a business receives over a period of time, especially from selling goods or services

companies, organisations or businesses

activities involved with managing and organising the work of a company or organisation

line drawn on a graph that shows how much of a good will be brought at different prices

a table of the quantity demanded of a good at different price levels - can be used to calculate the expected quantity demanded

amount of a good people are willing to buy at given prices over a given period of time backed by the ability to pay

relationship between price and quantity demanded when price goes up, the quantity demanded falls and when the price goes down the quantity demanded rises

movement to the left or right of the entire demand curve when there is a change in any factor affecting demand except the price

income that is available to someone over a period of time to spend; it includes state benefits but excludes direct taxes

goods for which demand will fall if income rises or rise if income falls

Goods for which demand will increase if income increases or fall if income falls

goods brought as an alternative to another but perform the same function

goods purchased together because they are consumed together

amount that producers are willing to offer for sale at different prices in a given period of time

line drawn on a graph that shows how much of a good sellers are willing to supply at different prices

relationship between price and the quantity supplied when the price goes up, the quantity supplied also goes up and when the price goes down the quantity supplied also goes down

movement to the left or right of the entire supply curve when there is any change in the conditions of the supply except the price

new business activities or projects that involve taking risks

taxes levied on spending, such as VAT

rate at which goods are produced in relation to the work, time, and money needed to produce them

amount of goods, services, energy, or natural materials used in a particular period of time

money that is paid by a government or an organisation to make prices lower, reduce the cost of producing goods or providing a service, usually to encourage production of a certain good

price at which supply and demand are equal

price at which the amount supplied in a market matches exactly the amount demanded

amount of money generated from the sale of goods calculated by multiplying price by quantity

when demand is greater than supply and there are shortages in the market

when supply is greater than demand and there are unsold goods in the market

the responsiveness of the quantity demanded to a change in price

change in price results in a proportionately smaller change in the quantity demanded

change in price results in a greater change in the quantity demanded

demand where PED=∞ (an increase in price will result in zero demand)

demand where PED=0 (a change in price will result in no change in the quantity demanded)

where PED= -1 (the responsiveness of demand is proportionately equal to the change in price)

goods, especially food, that sells very quickly and in large amounts

responsiveness of supply to a change in price

change in price results in a proportionally smaller change in the quantity supplied

change in price results in a proportionally greater change in the quantity supplied

where PES=∞ (producers will supply an infinite amount at the given price)

where PES=0 (the quantity supplied is fixed and cannot be adjusted whatever the price)

where PES=1 (a change in price will be matched by an identical change in quantity supplied)

a person or company that sells goods in large quantities to businesses, rather than to the general public

substances used to make a product

responsiveness of demand to a change in income

non-essential spending or spending that is not automatic

government tax on certain goods, such as cigarettes, alcoholic drinks, and petrol that are sold in a country

tax on some goods and services - businesses pay VAT on most goods and services they buy and if they are VAT registered, and charge VAT on the the goods and services they sell

system that attempts to solve the basic economic problem

provision of goods and services by businesses that are owned by individuals or groups

government organisations that provide goods and services in the economy

people or organisations that own shares in a company

part of a company's profit that is divided among the people with shares in a company

things or resources belonging to an individual or a business that has value or the power to earn money

amount of debt that is owned or must be paid

where markets lead to inefficiency

economy where goods and services are provided by both the private and the public sectors

goods that are under-provided by the public sector

goods that are not likely to be provided by the private sector

individual who enjoys the benefit of a good but allows others to pay for it

act of selling a company or activity controlled by the government to private investors

situation where a business activity is controlled by only one company or by the government, and other companies do not compete with it

public corporations previously part of the private sector that were taken into state ownership

situations that occur when one firm in an industry can serve the entire market at a lower cost than would be possible if the industry were composed of many smaller firms

if a company or economy diversifies, it increases the range of goods or services it produces

act of getting control of a company by buying over 50 per cent of its shares

effects that one situation or problem has on another situation

negative spillover effects of consumption or production - they affect parties in a negative way

positive spillover effects of consumption or production - they bring benefits to third parties

costs of an economic activity to individuals and firms

costs of an economic activity to society as well as the individual or firm

rewards to third parties of an economic activity, such as consumption or production

benefits of an economic activity to society as well to the individual or firm