10 of the Economics glossary’s terms, each with the part of the syllabus where you first meet it.
A composite measure of well-being published by the OECD, covering 11 topics such as income, jobs, health, environment and life satisfaction, which users can weight themselves.
Loans that a government or central bank takes from foreign governments or international institutions, such as the IMF, recorded in the financial account.
Aid from governments and their agencies to developing countries and multilateral institutions whose main aim is economic development and welfare, given as grants or as loans on concessional terms.
A market structure dominated by a few large firms, protected by high barriers to entry, whose decisions on price and output are interdependent.
The buying and selling of government bonds by the central bank in the open market to change the reserves of commercial banks, the money supply and short-term interest rates.
The value of the next best alternative given up when a choice is made.
A method of measuring national income by adding up the value added by every firm and industry in the economy, which avoids double counting intermediate goods.
The difference between an economy’s actual real GDP and its potential output (the full employment level of output), often expressed as a percentage of potential output.
The situation where more resources are used to produce a good than is socially optimal, so output is above the level where MSB = MSC.
A currency whose official or market exchange rate is higher than the rate that would balance demand for and supply of it in a free market, making exports dear and imports cheap.