NCC Economics Definitions

Economics is.....

• ...the study of how society decides when, what and how to produce

• ...the study of supply and demand

• ...easy and you don't need to know any specific words

• ...only relevant to large businesses and government

The quantity of goods or services that buyers wish to purchase.

• Demand

• Supply

• Equilibrium

• The total market

A line on a graph that shows the quantity of goods supplied at each possible price in a market

• Supply line

• Supply curve

• X Axis

• Equilibrium

Elasticity is...

• ...how quantities of goods or services respond to changes in price in a market

• ...a good thing for businesses as it means they will generate more sales revenue

• ...used to charge your phone

• ...do do with clothing, not economics

The point where supply equals demand in a market is called...

• ...equilibrium.

• ...break-even.

• ...profit.

• ...balance.

Economies of scale is...

• ...reductions in average costs due to a high level of output.

• ...the 10 largest economies in the world.

• ...when businesses merge together.

• ...increases in total costs due to the difficulties of being a large business.

The total cost of producing goods and services where a firm has time to produce its output as cheaply as possible.

• Long run total cost

• Minimum total cost

• Short run total cost

• Efficient total cost

The efforts of individuals and firms to capture a share of the market is...

• ...competition.

• ...acquisition.

• ...positioning.

• ...market raiding.

A situation where the actions of individual buyers and sellers have no effect on the market price is called...

• ...perfect competition.

• ...hegemony.

• ...rigid marketplace.

• ...oligopoly.

A form of imperfect competition where there is only one supplier is called...

• ...a monopoly.

• ...an oligopoly.

• ...monopolistic competition.

• ...a high barrier to entry.