3/18/25, 4:45 PM Edexcel A Level Economics / 120+ Key Quizzes, and Practice Questions for Guaranteed Success / Newest 2025/2026 Flashcards |…
Edexcel A Level Economics / 120+ Key Quizzes,
and Practice Questions for Guaranteed Success /
Newest 2025/2026
Save
Terms in this set (1993)
When a country's output of a product per unit of input
Absolute advantage
is greater than that of any other country.
When a person does not have the income or wealth
Absolute poverty
to fulfil their basic needs.
The total demand/spending in an economy at a given
price level over a given period of time. Made up of
Aggregate Demand (AD)
consumption, investment, government spending and
net external demand.
The total amount of goods and services that can be
Aggregate Supply (AS) supplied in an economy at a given price level over a
given period of time.
Aid The transfer of resources from one country to another.
Where the price of a good is equal to the price
Allocative efficiency consumers are willing to pay. This occurs when all
resources are allocated efficiently.
Where buyers have more information than sellers in a
Asymmetric information
market, or vice versa.
Parts of fiscal policy that automatically react to
Automatic stabilisers
changes in the economic cycle.
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Average Cost (AC) The cost of production per unit of output.
Average Revenue (AR) The revenue per unit sold.
Backward vertical Where a firm merges with or takes over a firm further
integration back in the production process.
A record of the international transactions of an
Balance of payments
economy.
The official rate of interest set by the central bank (e.g.
Bank rate by the Monetary Policy Committee of the Bank of
England)
Potential difficulties that make it hard for firms to enter
Barriers to entry
a market.
Potential difficulties that make it hard for firms to leave
Barriers to exit
a market.
Economic activity that occurs without taxation and
Black market
government intervention.
Budget deficit When government spending exceeds tax revenues.
Budget surplus When tax revenues exceed government spending.
A part of the balance of payments that shows
Capital account of the
transfers of non-monetary and fixed assets into and
balance of payments
out of the economy.
A group of products who collude to limit output in
Cartel
order to keep prices high.
The institution responsible for issuing banknotes in an
Central bank economy, acting as a lender of last resort, and
implementing monetary policy.
Ceteris paribus All other things remaining equal
The flow of national output, income and expenditure
Circular flow of income
between firms and households.
An economy where only the government determines
Command economy
the allocation of resources.
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Edexcel A Level Economics / 120+ Key Quizzes,
and Practice Questions for Guaranteed Success /
Newest 2025/2026
Save
Terms in this set (1993)
When a country's output of a product per unit of input
Absolute advantage
is greater than that of any other country.
When a person does not have the income or wealth
Absolute poverty
to fulfil their basic needs.
The total demand/spending in an economy at a given
price level over a given period of time. Made up of
Aggregate Demand (AD)
consumption, investment, government spending and
net external demand.
The total amount of goods and services that can be
Aggregate Supply (AS) supplied in an economy at a given price level over a
given period of time.
Aid The transfer of resources from one country to another.
Where the price of a good is equal to the price
Allocative efficiency consumers are willing to pay. This occurs when all
resources are allocated efficiently.
Where buyers have more information than sellers in a
Asymmetric information
market, or vice versa.
Parts of fiscal policy that automatically react to
Automatic stabilisers
changes in the economic cycle.
https://quizlet.com/1019740727/edexcel-a-level-economics-120-key-quizzes-and-practice-questions-for-guaranteed-success-newest-20252026-flash-c… 1/8
, 3/18/25, 4:45 PM Edexcel A Level Economics / 120+ Key Quizzes, and Practice Questions for Guaranteed Success / Newest 2025/2026 Flashcards |…
Average Cost (AC) The cost of production per unit of output.
Average Revenue (AR) The revenue per unit sold.
Backward vertical Where a firm merges with or takes over a firm further
integration back in the production process.
A record of the international transactions of an
Balance of payments
economy.
The official rate of interest set by the central bank (e.g.
Bank rate by the Monetary Policy Committee of the Bank of
England)
Potential difficulties that make it hard for firms to enter
Barriers to entry
a market.
Potential difficulties that make it hard for firms to leave
Barriers to exit
a market.
Economic activity that occurs without taxation and
Black market
government intervention.
Budget deficit When government spending exceeds tax revenues.
Budget surplus When tax revenues exceed government spending.
A part of the balance of payments that shows
Capital account of the
transfers of non-monetary and fixed assets into and
balance of payments
out of the economy.
A group of products who collude to limit output in
Cartel
order to keep prices high.
The institution responsible for issuing banknotes in an
Central bank economy, acting as a lender of last resort, and
implementing monetary policy.
Ceteris paribus All other things remaining equal
The flow of national output, income and expenditure
Circular flow of income
between firms and households.
An economy where only the government determines
Command economy
the allocation of resources.
https://quizlet.com/1019740727/edexcel-a-level-economics-120-key-quizzes-and-practice-questions-for-guaranteed-success-newest-20252026-flash-c… 2/8
