1. Abnormal profit- occurs when the total revenue is greater then total costs

2. Adding value- occurs when the output created by transformation process is worth more the inputs used in the process

3. Aggregate demand- total planned demands for final goods and services in the economy at each price, with all other factors unchanged

4. aggregate supply shows the total level of planned output in the economy at each and every price

5. allocative efficiency- occurs when the price paid by the customer equals the social marginal cost of producing the good

6. appreciation- when a currency increases in value against other countries

7. asymmetric information- the difference in the information available to each two parties involved in a transaction

8. average cost- cost per unit

9. average product of labour- average output per worker

10. average revenue- the price of the unit

11. balance of payment- measures the value of one country currency transactions with the rest of the world over a given period

12. balance of trade- measures the value of the difference between a country’s export and its imports in good and services over a given pride

13. barriers to entry- factors that make entry to a market difficult

14. budget position- measures the difference between government revenue and spending over a given period

15. cartel- occurs when the business collude to set price and/or output

16. classical economist- wages and price adjust to clear markets quickly and the economy settles at or near full employment

17. community surplus- measures the sum of consumer surplus and product surplus

18. comparative advantage- advantage held by a country in the Production product, Ie has a lower opportunity costs than other countries

19. complements- products with negative cross price elasticity

20. concentration ratio- measures the market share

21. consumer price index- is a measure of inflation

22. consumer surplus- difference between the price charged for a product and what the customer wants to pay for it

23. consumption- planned spending by household on good and services

24. consumption- planned spending by household on good and services

25. cyclical unemployment- people are unemployed due to lack of demand in the economy

26. demand curve- shows demand at each and every price

27. diseconomies of scale- increase in long term averages, and the scale of production increases

28. equilibrium price- price at which the quantity of demand equals the quanlity supplied

29. fiscal policy- government spending, taxation and benefit rates to influence the economy

30. free goods- goods for which provisions have no opportunity costs

31. gdp-