IGCSE Economics Glossary Terms - A

A situation in which a country is able to produce a particular good or service at a lower cost (using fewer resources) relative to other countries

• Absolute advantage

• Relative advantage

• Absolute gain

• Relative gain

A situation in which an individual does not have enough income to satisfy their most basic needs of food, clean water, clothing, shelter, education and healthcare

• Relative poverty

• Absolute poverty

• Aggregate poverty

• Relational poverty

The proportion of people within a population who fall into certain age groups, e.g. young (0-14 years), of working age (15-65 years) and old (65 years and beyond)

• Ageing population

• Age spread

• Age distribution

• Age appreciation

The total demand for all goods and services in an economy from consumption (C), investment (I), government spending (G) and net exports (X-M)

The total supply of goods and services in an economy

The way resources are allocated to the production of the goods and services most wanted by consumers

• Allocation of resources

• Allocation of goods

• Allocation of services

• Allocation of production

A rise in the value of a currency due to market forces

Items of value, such as property and land

A situation in which government spending is cut and taxes are increased in a country, usually to meet debt repayment obligations

The cost of producing a unit (unit cost of production). It is calculated by dividing total cost by output or quantity

• Average cost

• Average unit

• Average production

• Average quantity