7 of the Economics glossary’s terms, each with the part of the syllabus where you first meet it.
The value of a firm’s output minus the cost of the intermediate goods and services it buys from other firms; the sum of all value added equals final output.
An ad valorem indirect tax charged as a percentage of the value added at each stage of production and distribution, and paid in full by the final consumer in the price.
A view about what is good or bad, fair or unfair, or what ought to be done, based on personal, ethical or political values rather than on facts that can be tested.
Costs of production that change with the level of output, such as raw materials, energy and the wages of hourly workers; they are zero when output is zero.
A luxury good bought partly to display wealth or status, for which a higher price can make the good more desirable to some buyers.
Groups that gain from an existing situation and therefore resist policies that would change it, such as protected firms, trade unions or professional bodies lobbying against reform.
An agreement in which an exporting country limits the quantity of a good it sends to an importing country, usually under pressure from the importing country.