Edexcel A-Level Economics A: Definitions Exam Questions (191 Terms) With Verified Definitions Updated 2024

Horizontal integration {Ans: Where a firm merges with or takes over a firm that is at the same stage of production of a similar product.}Static efficiency {Ans: When productive and allocative efficiency are both achieved at a particular point in time.}Satisficing {Ans: Running a firm in such a way that does just enough to satisfy important stakeholders, as opposed to maximising something.}Inflation {Ans: The sustained rise in the average price of goods and services in an economy over a period of time.}Protectionism {Ans: When a government uses policies to control international trade to protect its own economy, firms and industries.}Free rider problem {Ans: Once a public good is provided, there is no way to stop people who haven't paid for the good from benefiting from it.}Terms of trade {Ans: A measure of the price of a country's exports relative to its imports.}Equity {Ans: Fairness}Unemployment level {Ans: The number of people who are looking for a job but cannot find one.}Conglomerate integration {Ans: Where a firm merges with or takes over a firm in a completely different market.}Real income {Ans: A persons income, adjusted for the effects of inflation.}Perfect information