12 of the Economics glossary’s terms, each with the part of the syllabus where you first meet it.
The situation where fewer resources are used to produce a good than is socially optimal, so output is below the level where MSB = MSC.
The situation in which people are employed but work fewer hours than they want, or in jobs that do not use their skills and qualifications.
A currency whose official or market exchange rate is lower than the rate that would balance demand for and supply of it in a free market, making exports cheap and imports dear.
The situation in which people of working age who are willing and able to work, and actively looking for work, do not have a job.
Transfer payments made by the government to people who are unemployed and looking for work, replacing part of their lost income.
The situation where some factors of production, such as workers, machines or land, are not being used to produce, so output is below the economy’s potential; shown by a point inside the PPC.
The number of unemployed people expressed as a percentage of the labour force (the employed plus the unemployed).
Demand for which the percentage change in quantity demanded equals the percentage change in price, so that PED is exactly 1 and total spending does not change when price changes.
Supply for which the percentage change in quantity supplied equals the percentage change in price, so that PES equals 1, as on any straight supply curve through the origin.
A regular, unconditional cash payment made by the government to every adult or citizen, regardless of income, wealth or employment.
The satisfaction or benefit a consumer gains from consuming a good or service.
The assumption that consumers use their limited income to buy the combination of goods and services that gives them the greatest possible total satisfaction.