Edexcel Igcse Economics

Front 1

Section A:

Part One

Chapter One

Front 2

Demand

Back 2

The amount of a good that will be bought at given prices over a period of time

Front 3

Exporters

Back 3

Firms that sell overseas

Front 4

Market

Back 4

A set of arrangements allowing buyers and sellers to communicate and exchange goods and services

Front 5

Market System or Price Mechanism

Back 5

The automatic determination of prices and the allocation of resources by the operation of markets in the economy

Front 6

Price

Back 6

The amount of money that goods are exchanged for in a transaction

Front 7

Supply

Back 7

The amount of a good that sellers are prepared to sell at given prices over a period of time

Front 8

Chapter Two

Front 9

Demand Curve

Back 9

A line drawn on a graph which shows how much of a good will be bought at different prices

Front 10

Effective Demand

Back 10

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

Front 11

Inverse Relationships (between price and quantity of demand)

Back 11

When price goes up the quantity demanded falls and when the price goes down the quantity demanded rises

Front 12

Chapter Three

Front 13

Complementary Goods

Back 13

Goods purchased together because they are consumed together

Front 14

Inferior Good

Back 14

A good for which demand will fall if income rises or rise if income falls

Front 15

Normal Good

Back 15

A good for which demand will rise if income rises or fall if income falls

Front 16

Shift In The Demand Curve

Back 16

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

Front 17

Substitute Goods

Back 17

Goods bought as an alternative to another but preform the same function

Front 18

Chapter Four

Front 19

Supply Curve

Back 19

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

Front 20

Chapter Five

Front 21

Advalorem Tax (VAT)

Back 21

A tax levied as a percentage of price of a good

Front 22

Indirect Taxes

Back 22

Taxes imposed by the government on spending

Front 23

Specific Tax

Back 23

A lump sum tax on the amount sold, per unit for example

Front 24

Subsidy

Back 24

A grant given to producers, usually to encourage a production of a certain good

Front 25

Chapter Six

Front 26

Equilibrium Price

Back 26

Price where supply and demand are equal

Front 27

Excess Demand

Back 27

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

Front 28

Excess Supply

Back 28

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

Front 29

Market Clearing Price

Back 29

Price where the amount supplied in a market matches exactly the amount demanded

Front 30

Total Revenue

Back 30

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

Front 31

Chapter Seven

Front 32

PED

Back 32

Price elasticity of demand

Front 33

Elastic Demand

Back 33

A change in price results in a more than proportional change in demand

Front 34

Inelastic Demand

Back 34

A change in price leads to a less than proportional change in demand

Front 35

Price Elasticity of Demand

Back 35

The responsiveness of demand to a change in price

Front 36

Chapter Eight

Front 37

Price elasticity of supply

Back 37

The response of supply to a change in price

Front 38

Chapter Nine

Front 39

Discretionary Expenditure

Back 39

Non-essential spending or spending that is not automatic

Front 40

Income elasticity of demand

Back 40

The responsiveness of demand to a change in income

Front 41

Chapter Ten

Front 42

Unitary Elasticity

Back 42

Where price elasticity of demand for a product is equal to 1. For such a product total revenue is exactly the same at all prices