Edexcel A-Level Economics A: Definitions 191 Correctly Answered Questions Latest Update

Disposable income {Ans: Income available for households to spend after their tax obligations are fulfilled.}Revenue {Ans: The total value of sales of a good or services over a given time period}Backward vertical integration {Ans: Where a firm merges with or takes over a firm further back in the production process.}Variable costs {Ans: Costs that vary with the level of output of a firm.}Productive efficiency {Ans: When products are products at a level of output where average cost is lowest.}Organic growth {Ans: A firm growing through increasing the levels of factors of production it uses.}Productivity {Ans: The average output produced per unit of a factor of production}Price cap {Ans: A government-imposed limit on prices that make markets fairer to consumers, and also incentivise efficiency.}Long-Run Aggregate Supply (LRAS) {Ans: The productive potential of economy operating at full capacity.}Shadow banking system {Ans: Firms, or parts of firms, that provide credit but that are unregulated.}Free market {Ans: A market where there is no government intervention.}Forward vertical integration {Ans: Where a firm merges with or takes over a firm further forward in the production process.}Trade union {Ans: An organisation that represents the