Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

23 Cards in this Set

  • Front
  • Back

Absolute Advantage

Where a country using a given resource input is able to produce more than other countries with the same input

Absolute Poverty

When an individual or household's income is insufficient for them to afford basic shelter, food and clothing

Accelerator Theory

The theory that the level of investment is related to past changes in national income

Activist Shareholders

Shareholders that will clamour for greater dividends and may mobilise other shareholders to oppose the management

Activity rate / Participation rate

The proportion of the population of working age in a job or actively seeking work

Actual Growth

An increase in the productive potential of the economy matched by an increase in demand


A tax which is a percentage of the price of the unit

Adaptive Expectations

Where decisions about the future are based upon past information

Adjustable Peg

Value of the fixed exchange rate can be changed as circumstances require

Allocative Efficiency

The optimum allocation of scarce resources that best accords with the consumers' pattern of demand

Allocative Inefficiency

When resources are not used to produce goods or services wanted by consumers

Anglo-Saxon Neo-liberalism

Economic reform aimed at boosting the dynamism of economies - in contrast to the 'social model' which stresses social objectives

Annual General Meeting (AGM)
Annual meeting where shareholders can discuss the accounts and elect directors
Anticipated inflation
Where economic agents correctly predict the future rate of inflation
When a floating currency increase in value
Increasing the value of a currency in a free floating exchange rate system
Automatic stabilisers
Features of government spending and taxation that minimise fluctuations in the economic cycle
Average cost pricing

Setting the price at the level of average cost

Average fixed cost

Total fixed costs divided by the number produced

Average product

The total product divided by the number of workers

Average revenue

Total revenue + number sold

Average total cost

Total cost divided by the number produced

Average variable cost

Total variable costs divided by the number produced