Economics IGCSE EDEXCEL

Advalorem tax - correct answer Tax levied as a percentage of the price of a good. Aggregate demand - correct answer Total demand in the economy including consumption, investment, government expenditure and exports minus imports. Anti-competitive practices or restrictive trade practices - correct answer An attempt by firms to prevent or restrict competition. Assisted areas - correct answer Areas designated as having problems by the UK or EU and are eligible for support. Average costs - correct answer The cost per unit of output; it is equal to total cost divided by output. Backward vertical integration - correct answer Merging with a firm that operates in the previous stage of production. Balance of payments - correct answer A record of all transactions relating to international trade. Balance of trade or visible balance - correct answer The difference between visible exports and visible imports. Barriers to entry - correct answer Obstacles that might discourage a firm from entering a market. Base rate - correct answer The rate of interest set by the MPC which influences all other rates in the economy. Basic economic problem - correct answer Allocation of a nation's scarce resources between competing uses that represent infinite wants. Boom - correct answer The peak of the economic cycle where GDP is growing at its fastest. Budget - correct answer The government's spending and revenue plans for the next year. Budget deficit - correct answer The amount by which government spending exceeds government revenue. Budget surplus - correct answer The amount by which government revenue exceeds government spending. Capital intensive - correct answer Where production relies more heavily on machinery relative to labour. Cartel - correct answer Where a group of firms or countries join together and to agree on pricing or output levels in the market. Choice - correct answer Deciding between alternative uses of scare resources. Collusion - correct answer Agreements between firms to restrict competition