AQA Economics GCSE Key Terms
Microeconomics
Needs - ANS- Necessities required for living
Wants - ANS- Not a necessity but something you would like to survive
Production - ANS- The process of turning inputs into goods and services
Consumers - ANS- Someone that buys goods and services
Producers - ANS- A person or company that makes goods or services to sell
Factors of production - ANS- The inputs used to produce goods and services
Land - ANS- All natural resources used to produce goods and services
Labour - ANS- The people used in production
Capital - ANS- Man made goods used in the production process
Enterprise - ANS- The person organising factors of production
Opportunity cost - ANS- The best next alternative forgone
Markets - ANS- The process by which the prices of goods and services are determined
Factor markets - ANS- The buying and selling of land, labour and capital
Product markets - ANS- A market where goods and services are bought and sold and
prices are determined by the interaction of demand and supply
Scarce resources - ANS- The limited availability of economic resources
Primary sector - ANS- Industries involved in production or extraction of natural
resources
Secondary sector - ANS- Manufacturing industries that convert raw materials into
finished goods
, Tertiary sector - ANS- Industries that provide services
Specialisation - ANS- Where a country, business or worker focuses on the production of
a limited range of products in order to gain efficiency
Division of labour - ANS- Where workers specialise in one particular task of the
production process
Exchange - ANS- Where buyers and sellers come together in a market place to negotiate
prices
Demand - ANS- A consumers desire, willingness and ability to pay a price for a specific
good or service
Demand curve - ANS- Graph that shows the different quantity of product demanded at
different price levels
Shift in demand curve - ANS- Factors other than price causing demand to change
Movement along the demand curve - ANS- Price changes that cause demand to change
Supply - ANS- The amount of a product that producers and firms are willing to sell at a
given price
Supply curve - ANS- Graph that shows the different quantity of product supplied at
different price levels
Shift in supply curve - ANS- Factors other than price causing supply to change
Movement along the supply curve - ANS- Price changes that cause supply to change
Equilibrium price - ANS- The point at which quantity demanded and quantity supplied
are equal
Revenue - ANS- Income received from sale of goods or services
Excess demand - ANS- When quantity demanded exceeds quantity supplied, resulting in
shortages and higher prices
Excess supply - ANS- when the quantity supplied exceeds the quantity demanded,
resulting in excess products and lower prices
Microeconomics
Needs - ANS- Necessities required for living
Wants - ANS- Not a necessity but something you would like to survive
Production - ANS- The process of turning inputs into goods and services
Consumers - ANS- Someone that buys goods and services
Producers - ANS- A person or company that makes goods or services to sell
Factors of production - ANS- The inputs used to produce goods and services
Land - ANS- All natural resources used to produce goods and services
Labour - ANS- The people used in production
Capital - ANS- Man made goods used in the production process
Enterprise - ANS- The person organising factors of production
Opportunity cost - ANS- The best next alternative forgone
Markets - ANS- The process by which the prices of goods and services are determined
Factor markets - ANS- The buying and selling of land, labour and capital
Product markets - ANS- A market where goods and services are bought and sold and
prices are determined by the interaction of demand and supply
Scarce resources - ANS- The limited availability of economic resources
Primary sector - ANS- Industries involved in production or extraction of natural
resources
Secondary sector - ANS- Manufacturing industries that convert raw materials into
finished goods
, Tertiary sector - ANS- Industries that provide services
Specialisation - ANS- Where a country, business or worker focuses on the production of
a limited range of products in order to gain efficiency
Division of labour - ANS- Where workers specialise in one particular task of the
production process
Exchange - ANS- Where buyers and sellers come together in a market place to negotiate
prices
Demand - ANS- A consumers desire, willingness and ability to pay a price for a specific
good or service
Demand curve - ANS- Graph that shows the different quantity of product demanded at
different price levels
Shift in demand curve - ANS- Factors other than price causing demand to change
Movement along the demand curve - ANS- Price changes that cause demand to change
Supply - ANS- The amount of a product that producers and firms are willing to sell at a
given price
Supply curve - ANS- Graph that shows the different quantity of product supplied at
different price levels
Shift in supply curve - ANS- Factors other than price causing supply to change
Movement along the supply curve - ANS- Price changes that cause supply to change
Equilibrium price - ANS- The point at which quantity demanded and quantity supplied
are equal
Revenue - ANS- Income received from sale of goods or services
Excess demand - ANS- When quantity demanded exceeds quantity supplied, resulting in
shortages and higher prices
Excess supply - ANS- when the quantity supplied exceeds the quantity demanded,
resulting in excess products and lower prices
