ABSOLUTE ADVANTAGE
The
ability of a country, individual, company or region to produce a good or
service at a lower cost per unit than the cost at which any other country,
individual, company or region produces that good or service.
ARTIFICIAL BARRIERS TO ENTRY
Obstacles created by a powerful monopoly purposefully to restrict competition from new
firms entering the markets.
AVERAGE COST
The cost per unit of output, it is calculated by dividing the
total cost of a given level of output by that total volume of output.
ADVERTISING
The activity or profession
of producing an announcement in a public medium promoting a product, service,
or events. (For commercial products or
services – for increasing the flow of
information between the seller and the consumer
and to manipulate consumer tastes
and creates desires among consumers by making better aware of the products.)
ALTERNATIVES
Options among which to make
choices.
ABNORMAL
PROFIT
It is a profit enjoyed by the monopoly
firm (this is the amount of profit that is over and above the normal
profit which a firm is expected to get
if they faced competition in their
market)
ABSOLUTE POVERTY
An economic condition of lacking both money and basic necessities
needed to successful survival such as food, clothing, water, shelter and other
basic things such as basic education, and necessary health care.
ADULT LITERACY RATE
A measure of the number of people of working age as a proportion
of the total population in a country who are able to read and write.
AGGREGATE DEMAND
The total demand for goods and services in an economy. It is
determined by consumer spending, investment, public expenditure and spending by
overseas residents on exports.
AGGREGATE SUPPLY
The total output or supply of all goods and services in an economy
that all producers are willing and able to supply.
ANCILLARY FIRMS
The firms which
provide goods and business services for other firms; they are often located
near to their main business as they are their customers.
APPRECIATION OF CURRENCY
A rise in the rate at which a country’s currency can be exchanged
for another currency or currencies, i.e. a rise in the market price of one
currency in terms of other currencies.
AVERAGE REVENUE
The revenue per unit of output sold, it is calculated by dividing
the total revenue from the sale of a given output by that volume of output.
AVERAGE TAX RATE The total amount of
personal or corporate income tax a person or firm pays from their total annual
income as a proportion of their total annual income.