Edexcel As Economics Study Guide Rated A+

Purchasing Power Parity {Ans: Exchange rate of one currency to another that compares the cost of living in different countries through comparing a typical basket of goods}Current account {Ans: A record of the payments for the purchase and sale of goods and services, as well as income and transfers}Labour {Ans: The physical and mental effort of workers used in the production process}Price Elasticity of demand (PED) {Ans: The responsiveness of demand to a change in price}GNP (Gross National Product) {Ans: The value of goods and services produced by citizens of a country, whether they live in the country or not.}GDP {Ans: The value of goods and services produced in a country over a given period of time}Labour Force Survey {Ans: A quarterly sample survey of households in the UK. Its purpose is to provide information on the UK labour market.}Inflation {Ans: A continuous rise in the price of goods and services}Opportunity Cost {Ans: The next best alternative foregone}Multiplier {Ans: An increase in an injection will lead to an even greater increase of national income}Diminishing Marginal Utility {Ans: Decreasing satisfaction or usefulness as additional units of a product are acquired}Deflation