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Side A ------ Side B
Occupational Immobility ------ The lack of skill, knowledge and/or ability to perform a job. Often due to structural unemployment. 
Geographical Immobility ------ Difficulty moving/commuting to where employment opportunities are. EG family reasons, costs of moving house/rent.
Income ------ A flow of earnings to a factor of production over a period of time.
Wealth ------ A stock of owned assets. EG housing property or a portfolio of shares.
Indirect tax ------ Taxes on spending.
Pollution permit ------ A permit sold to firms by the government allowing them to pollute up to a certain limit.
Law of Unintended Consequences  ------ When the actions of consumers, producers and/or governments have effects that are unanticipated. 
Inflation ------ A sustained rise in the general price level
Economies of scale ------ Where an increase in production leads to a lower Average Total Cost (ATC)
Diseconomies of scale ------ Where an increase in production leads to a higher Average Total Cost (ATC)
Competition ------ A market situation in which there are a large number of buyers and sellers. 
Monopoly ------ A market structure dominated by a single seller of a good or service.
Externalities ------ Cost/Benefits that spillover to an external third party, not involved in an economic transaction.
Marginal Private Cost (MPC)/Marginal Private Benefit (MPB) ------ The cost/benefit to an individual or firm of an economic transaction.
Marginal External Cost (MEC)/Marginal External Benefit (MEB)  ------ The cost/benefit spillover to a 3rd party not involved in the economic transaction
Marginal Social Cost (MSC)/Marginal Social Benefit (MSB) ------ The full cost/benefit to society.MSC = MPC + MECMSB = MPB + MEB 
Positive Externalities ------ Positive spillover effects to 3rd parties of an economic transaction. 
Ex ante ------ A term that refers to future events yet to come.
Ex post ------ A term that refers to occurances after an event
Merit Good ------ A good that would be under-consumed in a free market. All benefits to society are not fully perceived. 
Informational Failure ------ Where economics agents do not fully  perceive the pros and cons of an economics transaction.
Partial Market Failure ------ Where the free market provides a product but with mis-allocation of resources. 
Demerit Good ------ A good which would be over-consumed in a free market, as consumers don't fully understand the costs.
Public Good ------ Satisfies the Non-excludability and Non-rivalry conditions. (has complete market failure due to free rider problem). EG national defence
Quasi-Public Good ------ Has Some qualities of a public good, but does not fully satisfy the criteria. (has partial market failure) EG a local park.
Private Good ------ Is excludable and has rivals in competition 
Complete Market Failure ------ The free market fails to provide a product/service at all (EG public goods)
Minimum/Maximum Price  ------ A method of intervention by the government to impose lawfully a floor/ceiling price.
Price Elasticity of Demand, Ped ------ The responsiveness of demand to a change in the price level.
Subsidies  ------ Payments made by the government to producers to encourage production of a good/service. 
Incidence of Tax ------ The proportion of tax that is passed onto the consumer. This will be high when there is inelastic Ped; but low when there is elastic Ped. 
Income elasticity of demand, Ied ------ The proportion to which demand changes in response to changes in income. 
Substitutes ------ Goods that can be used as alternatives to another good.
Commodity ------ A good that is traded, but usually refers to raw materials or semi-manufactured goods, often traded in bulk. and often involves homogeneous (unbranded) goods. 
Investment good ------ A product that will increase in value over time.
Sustainable ------ An activity carried out today that does not stop future generations maximising their welfare.
Market failure ------ Where the market fails to produce what consumers require, at the lowest possible cost. 
Government failure  ------ When the government intervenes in a attempt to correct market failure, but worsens the situation; ie Costs > Benefits of the intervention. 
Buffer stocks ------ An intervention system that aims to limit the volatility/fluctuations of the price of a commodity.
Inflationary pressures. ------ Occurances thatare likely to lead to increased price levels
Negative Externalities ------ Costs imposed on a third party, not involved in an economic transaction.
Production ------ The process that converts factors of production into outputs of goods and services.
Fixed costs ------ Costs of productions that do not vary as output changes, EG rent, new capital, salaries. 
Variable costs ------ Costs of production that vary with output 
Supply ------ The amount offered for sale at each given price level
Planned supply ------ The amount producers plan to produce at each given price level 
Actual supply ------ The amount actually produced (may be different from planned supply)
Market Supply ------ The sum of all firms supply in a market's supply at each given price level. 
Extension in supply ------ Increased supply due to rising market price
Contraction in supply ------ Decreased supply due to falling market price. 
Joint Supply ------ Production of one good results in the production of another  EG Crude Oil --> petrol, diesel, polymers, bitumen, etc 
Equilibrium ------ Where demand equals supply and there is no tendency to change.
Disequilibrium  ------ Where demand does not equal supply (and therefore there is tendency for price/quantity changes). 
Excess Supply ------ Supply > Demand at a given price. Signals producers to lower prices. 
Market-clearing price ------ The (highest) price at which all goods that are supplied will be demanded.
Effective Demand ------ Demand supported by the ability to pay for a good or service
Market Demand ------ Total demand for a good in a market; the sum of individual's demand.
Contractions in demand. ------ Falls in quantity demanded caused by price rises.
Extensions in demand ------ Rises in quantity demanded caused by falls in price 
Normal Goods ------ Increase in demand when incomes rise
Inferior goods ------ Decrease in demand when incomes rise
Complimentary products  ------ Goods that are consumed together; EG Bread and Butter.
Composite Demand ------ Goods that are demanded for more than one purpose.
Derived Demand ------ When demand for one good/service comes from demand of another good/service; EG demand for tyres comes from demand for cars. 
Productivity ------ A measure of efficiency. Labour productivity equals output per person per unit time (usually hour) 
Human Capital ------ Skills, abilities, motivation and knowledge of labour.
Division of Labour ------ Breaking the production process down into a sequence of tasks with workers assigned to particular tasks.
Specialisation ------ The production of a limited range of goods/services, which when assembled, produces a better quality product/service.
Value Judgement ------ Non-falsifiable statements, often depending on the views of the individual 
Normative Statements ------ Opinions that require value judgments to be made.
Positive Statements  ------ Falsifiable statements, ie they can be tested against real-world data.
Demand ------ The amount that consumers are willing and able to buy at each given price level 
Economic Welfare ------ The benefit or satisfaction an individual or society gets from the allocation of resources
Economic goods ------ Goods that are scarce in resource and therefore have an opportunity cost
Free Goods ------ Goods that do not have an opportunity cost
Factor Market ------ The markets of the factors of production (CELL - Capital, Enterprise, Land and Labour) 
Profit ------ Where a firm's total revenue > costs
Free market economy ------ Has very little government intervention, eg in equity issues such as protection from thievery.  
PPB or PPC or PPF(Production Possibility Boundary/Curve/Frontier) ------ Indicates the max possible output at a fixed period of time (and technology, capital, etc)
Productive Efficiency ------ Firms operating at lowers ATC (average total cost), producing maximum outputs from given inputs 
Allocative Efficiency ------ Producing the right balance of goods and services which society values. i.e. you cannot make anyone better off without making someone else worse off.

Side A ------ Side B
Occupational Immobility ------ The lack of skill, knowledge and/or ability to perform a job. Often due to structural unemployment. 
Geographical Immobility ------ Difficulty moving/commuting to where employment opportunities are. EG family reasons, costs of moving house/rent.
Income ------ A flow of earnings to a factor of production over a period of time.
Wealth ------ A stock of owned assets. EG housing property or a portfolio of shares.
Indirect tax ------ Taxes on spending.
Pollution permit ------ A permit sold to firms by the government allowing them to pollute up to a certain limit.
Law of Unintended Consequences  ------ When the actions of consumers, producers and/or governments have effects that are unanticipated. 
Inflation ------ A sustained rise in the general price level
Economies of scale ------ Where an increase in production leads to a lower Average Total Cost (ATC)
Diseconomies of scale ------ Where an increase in production leads to a higher Average Total Cost (ATC)
Competition ------ A market situation in which there are a large number of buyers and sellers. 
Monopoly ------ A market structure dominated by a single seller of a good or service.
Externalities ------ Cost/Benefits that spillover to an external third party, not involved in an economic transaction.
Marginal Private Cost (MPC)/Marginal Private Benefit (MPB) ------ The cost/benefit to an individual or firm of an economic transaction.
Marginal External Cost (MEC)/Marginal External Benefit (MEB)  ------ The cost/benefit spillover to a 3rd party not involved in the economic transaction
Marginal Social Cost (MSC)/Marginal Social Benefit (MSB) ------ The full cost/benefit to society.MSC = MPC + MECMSB = MPB + MEB 
Positive Externalities ------ Positive spillover effects to 3rd parties of an economic transaction. 
Ex ante ------ A term that refers to future events yet to come.
Ex post ------ A term that refers to occurances after an event
Merit Good ------ A good that would be under-consumed in a free market. All benefits to society are not fully perceived. 
Informational Failure ------ Where economics agents do not fully  perceive the pros and cons of an economics transaction.
Partial Market Failure ------ Where the free market provides a product but with mis-allocation of resources. 
Demerit Good ------ A good which would be over-consumed in a free market, as consumers don't fully understand the costs.
Public Good ------ Satisfies the Non-excludability and Non-rivalry conditions. (has complete market failure due to free rider problem). EG national defence
Quasi-Public Good ------ Has Some qualities of a public good, but does not fully satisfy the criteria. (has partial market failure) EG a local park.
Private Good ------ Is excludable and has rivals in competition 
Complete Market Failure ------ The free market fails to provide a product/service at all (EG public goods)
Minimum/Maximum Price  ------ A method of intervention by the government to impose lawfully a floor/ceiling price.
Price Elasticity of Demand, Ped ------ The responsiveness of demand to a change in the price level.
Subsidies  ------ Payments made by the government to producers to encourage production of a good/service. 
Incidence of Tax ------ The proportion of tax that is passed onto the consumer. This will be high when there is inelastic Ped; but low when there is elastic Ped. 
Income elasticity of demand, Ied ------ The proportion to which demand changes in response to changes in income. 
Substitutes ------ Goods that can be used as alternatives to another good.
Commodity ------ A good that is traded, but usually refers to raw materials or semi-manufactured goods, often traded in bulk. and often involves homogeneous (unbranded) goods. 
Investment good ------ A product that will increase in value over time.
Sustainable ------ An activity carried out today that does not stop future generations maximising their welfare.
Market failure ------ Where the market fails to produce what consumers require, at the lowest possible cost. 
Government failure  ------ When the government intervenes in a attempt to correct market failure, but worsens the situation; ie Costs > Benefits of the intervention. 
Buffer stocks ------ An intervention system that aims to limit the volatility/fluctuations of the price of a commodity.
Inflationary pressures. ------ Occurances thatare likely to lead to increased price levels
Negative Externalities ------ Costs imposed on a third party, not involved in an economic transaction.
Production ------ The process that converts factors of production into outputs of goods and services.
Fixed costs ------ Costs of productions that do not vary as output changes, EG rent, new capital, salaries. 
Variable costs ------ Costs of production that vary with output 
Supply ------ The amount offered for sale at each given price level
Planned supply ------ The amount producers plan to produce at each given price level 
Actual supply ------ The amount actually produced (may be different from planned supply)
Market Supply ------ The sum of all firms supply in a market's supply at each given price level. 
Extension in supply ------ Increased supply due to rising market price
Contraction in supply ------ Decreased supply due to falling market price. 
Joint Supply ------ Production of one good results in the production of another  EG Crude Oil --> petrol, diesel, polymers, bitumen, etc 
Equilibrium ------ Where demand equals supply and there is no tendency to change.
Disequilibrium  ------ Where demand does not equal supply (and therefore there is tendency for price/quantity changes). 
Excess Supply ------ Supply > Demand at a given price. Signals producers to lower prices. 
Market-clearing price ------ The (highest) price at which all goods that are supplied will be demanded.
Effective Demand ------ Demand supported by the ability to pay for a good or service
Market Demand ------ Total demand for a good in a market; the sum of individual's demand.
Contractions in demand. ------ Falls in quantity demanded caused by price rises.
Extensions in demand ------ Rises in quantity demanded caused by falls in price 
Normal Goods ------ Increase in demand when incomes rise
Inferior goods ------ Decrease in demand when incomes rise
Complimentary products  ------ Goods that are consumed together; EG Bread and Butter.
Composite Demand ------ Goods that are demanded for more than one purpose.
Derived Demand ------ When demand for one good/service comes from demand of another good/service; EG demand for tyres comes from demand for cars. 
Productivity ------ A measure of efficiency. Labour productivity equals output per person per unit time (usually hour) 
Human Capital ------ Skills, abilities, motivation and knowledge of labour.
Division of Labour ------ Breaking the production process down into a sequence of tasks with workers assigned to particular tasks.
Specialisation ------ The production of a limited range of goods/services, which when assembled, produces a better quality product/service.
Value Judgement ------ Non-falsifiable statements, often depending on the views of the individual 
Normative Statements ------ Opinions that require value judgments to be made.
Positive Statements  ------ Falsifiable statements, ie they can be tested against real-world data.
Demand ------ The amount that consumers are willing and able to buy at each given price level 
Economic Welfare ------ The benefit or satisfaction an individual or society gets from the allocation of resources
Economic goods ------ Goods that are scarce in resource and therefore have an opportunity cost
Free Goods ------ Goods that do not have an opportunity cost
Factor Market ------ The markets of the factors of production (CELL - Capital, Enterprise, Land and Labour) 
Profit ------ Where a firm's total revenue > costs
Free market economy ------ Has very little government intervention, eg in equity issues such as protection from thievery.  
PPB or PPC or PPF(Production Possibility Boundary/Curve/Frontier) ------ Indicates the max possible output at a fixed period of time (and technology, capital, etc)
Productive Efficiency ------ Firms operating at lowers ATC (average total cost), producing maximum outputs from given inputs 
Allocative Efficiency ------ Producing the right balance of goods and services which society values. i.e. you cannot make anyone better off without making someone else worse off.