The goals a government wishes to achieve for the economy as a whole at a national and international level.

Where many buyers and many sellers come together

Where the quantity demanded by consumers and the quantity supplied by producers are not equal.

A system with prices that are based on competition between private sector businesses; markets are not controlled by the government.

Where the quantity demanded by consumers and the quantity supplied by producers are equal.

A situation where the economy's resources are not efficiently allocated: the market does not produce the goods and services that consumers most want and in a quantity that is required.

Prices are not permitted to rise above a certain level set by the government

The idea that money allows the value of different goods and services to be compared.

Anything that sets the standard of value of goods and services and is acceptable to all parties involved in a transaction.

The costs incurred by firms in changing their prices.

The process by which two independent firms come together to form a new firm.

A lack of information about how beneficial these products are for the consumer leads them to be underconsumed.

The study of the economic behaviour of individuals and businesses.

Prices are not permitted to fall below a certain level set by the government.

The lowest wage level that an employer may legally pay their workers.

An economy that has both private sector firms and government supplying goods and services.

How easily any of the factors of production can be transferred to an alternative use.

When the government controls the money supply (usually by changing interest rates) in order to achieve certain macroeconomic aims

Any thing that is generally accepted as a means of payment for goods and services.

The total money value of the goods and services produced in an economy, not accounting for inflation (may also be referred to as GDP or nominal GDP)

The quantity of money in circulation in the economy.

The sole producer or seller of a good or service.

A single firm dominates the market and has the power to determine the market price.

A company that operates in more than one country.