front 1 Money | back 1 an item which is generally acceptable as a means of payment |
front 2 Commercial banks | back 2 banks which aim to make a profit by providing a range of banking services to households and firms |
front 3 Central bank | back 3 a government-owned bank which provides banking services to the government and commercial banks and operates monetary policy |
front 4 Liquidity | back 4 being able to turn an asset into cash quickly without a loss |
front 5 Disposable income | back 5 income left after income tax has been deducted and state benefits received |
front 6 Wealth | back 6 a stock of assets including money held in bank accounts, shares in companies, government bonds, cars and property |
front 7 Rate of interest | back 7 a charge for borrowing money and a payment for lending money |
front 8 Average propensity to consume (APC) | back 8 the proportion of household disposable income which is spent |
front 9 Consumption | back 9 expenditure by households on consumer goods and income |
front 10 Savings ratio | back 10 the proportion of household disposable income that is saved |
front 11 Average propensity to save (APS) | back 11 the proportion of household disposable income that is saved |
front 12 Mortgage | back 12 a loan to help buy a house |
front 13 Earnings | back 13 the total pay received by a worker |
front 14 Wage rate | back 14 a payment which an employer contracts to pay a worker. It is the basic wage a worker receives per unit of time or unit of output |
front 15 National minimum wage (NMW) | back 15 a minimum rate of wage for an hour's work, fixed by the government for the whole economy |
front 16 Elasticity of demand for labour | back 16 a measure of the responsiveness of demand for labour to a change in the wage rate |
front 17 Elasticity of supply of labour | back 17 a measure of the responsiveness of supply of labour to a change in the wage rate |
front 18 Specialisation | back 18 the concentration on particular products or tasks |
front 19 Division of labour | back 19 workers specialising in particular tasks |
front 20 Trade union | back 20 an association which represents the interests of a group of workers |
front 21 Collective bargaining | back 21 representatives of workers negotiating with employers' associations |
front 22 Industrial action | back 22 when workers disrupt production to put pressure on employers to agree to their demands |
front 23 Industry | back 23 a group of firms producing the same product |
front 24 Primary sector | back 24 covers industries which extract natural resources |
front 25 Secondary sector | back 25 covers manufacturing and construction industries |
front 26 Tertiary sector | back 26 covers industries which provide services |
front 27 Quaternary sector | back 27 covers service industries that are knowledge based |
front 28 Internal growth | back 28 an increase in the size of a firm resulting from it enlarging existing plants or opening new ones |
front 29 External growth | back 29 an increase in the size of a firm resulting from it merging or taking over another firm |
front 30 Horizontal merger | back 30 the merger of firms producing the same product and at the same stage of production |
front 31 Vertical merger | back 31 the merger of firms producing the same product, but at a different stage of production |
front 32 Backward Vertical merger | back 32 a merger with a firm at an earlier stage of the supply chain |
front 33 Forward Vertical merger | back 33 a merger with a firm at a later stage of the supply chain |
front 34 Conglomerate merger | back 34 a merger between firms producing different products |
front 35 Internal economies of scale | back 35 lower long run average costs resulting from a firm growing in size |
front 36 External economies of scale | back 36 lower long run average costs resulting from an industry growing in size |
front 37 Internal diseconomies of scale | back 37 higher long run average costs arising from a firm growing too large |
front 38 External diseconomies of scale | back 38 higher long run average costs arising from an industry growing too large |
front 39 Total cost | back 39 the total amount that has to be spent on the factors of production used to produce a product |
front 40 Average total cost | back 40 total cost divided by output |
front 41 Fixed costs | back 41 cost which do not change with output in the short run |
front 42 Average fixed cost | back 42 total fixed cost divided by output |
front 43 Variable cost | back 43 costs that change with output |
front 44 Average variable cost | back 44 total variable cost divided by output |
front 45 Price | back 45 the amount of money that has to be given to obtain a product |
front 46 Total revenue | back 46 the total amount of money received from selling a product |
front 47 Average revenue | back 47 the total revenue divided by the quantity sold |
front 48 Profit satisficing | back 48 sacrificing some profit to achieve some goals |
front 49 Profit maximisation | back 49 making as much profit as possible |
front 50 Market structure | back 50 the conditions which exist in a market including the number of firms |
front 51 Competitive market | back 51 a market with a number of firms that compete with each other |
front 52 Monopoly | back 52 a market with a single supplier |
front 53 Barrier to entry | back 53 anything that makes it difficult for a firm to start producing the product |
front 54 Barrier to exit | back 54 anything that makes it difficult for a firm to stop producing the product |
front 55 Scale of production | back 55 the size of production units and the methods of production used |