Accounting for A

Pearson-Edexcel | Cambridge | IGCSE | O/A Level
ECONOMICS | Economic Growth

Economic growth refers to an increase in the size of a country's economy over a period of time. The size of an economy is typically measured by the total production of goods and services in the economy, which is called gross domestic product (GDP).

Pearson-Edexcel | Cambridge | IGCSE | O/A Level
ECONOMICS | Productivity

Productivity is a measure of efficiency that compares the amount of goods and services produced (output) with the quantity of inputs (such as labor, capital, or materials) used to create them.

Pearson-Edexcel | Cambridge | IGCSE | O/A Level
ECONOMICS | Producer

A producer in economics is any individual, business, or organization that creates, manufactures, or supplies goods and services. By combining inputs like labor, capital, and raw materials (the factors of production), they generate outputs that satisfy consumer wants and drive economic activity.

Pearson-Edexcel | Cambridge | IGCSE | O/A Level
ECONOMICS | Price Elasticity of Supply (PES)

Price Elasticity of Supply (PES) measures the responsiveness of the quantity supplied of a good to changes in its price. PES helps us understand how much the quantity supplied changes when the price changes.

Pearson-Edexcel | Cambridge | IGCSE | O/A Level
ECONOMICS | Price Elasticity of Demand (PED)

Price Elasticity of Demand (PED) measures how sensitive the quantity demanded of a good is to a change in its price. It helps businesses optimize pricing strategies and governments design taxation policies by showing exactly how consumer purchasing behavior reacts to price fluctuations.

Pearson-Edexcel | Cambridge | IGCSE | O/A Level
ECONOMICS | Innovation

Innovation describes the development and application of ideas and technologies that improve goods and services or make their production more efficient.

Pearson-Edexcel | Cambridge | IGCSE | O/A Level
ECONOMICS | Trading Bloc

A trading bloc is a group of countries that join together to reduce or eliminate trade barriers (such as tariffs and quotas) among themselves. This regional economic integration promotes trade and collaboration, allowing member nations to access larger markets while often imposing unified trade policies on non-members.

Pearson-Edexcel | Cambridge | IGCSE | O/A Level
ECONOMICS | Fiscal Surplus | Benefits of Fiscal Surplus

A fiscal surplus occurs when a government's total tax revenues exceed its expenditures in a given period, allowing the state to reduce national debt, control inflation, and build financial reserves for future economic downturns.

Pearson-Edexcel | Cambridge | IGCSE | O/A Level
ECONOMICS | Foreign Direct Investment (FDI) | Advantages of FDI

Foreign Direct Investment (FDI) accelerates economic development by injecting foreign capital, creating jobs, and driving technology and skill transfers. It helps countries integrate into the global economy, stimulates domestic industry competition, and expands the tax base.
Advantages of FDI for a host economy:
-Job Creation
-Technology & Knowledge Transfer
-Capital Inflow
-Increased Tax Revenue
-Development of Infrastructure

The Phillips curve states that inflation and unemployment have an inverse relationship; higher inflation is associated with lower unemployment and vice versa. The Phillips curve was a concept used to guide macroeconomic policy in the 20th century, but was called into question by stagflation in the 1970s.