Economics Revision

3. to increase something such as profit, satisfaction or income as much as possible
8. Tax levied on spending, such as VAT
9. New business activities or projects that involve taking risks
11. cost of the next best alternative given up
12. Goods bought as an alternative to another but perform the same function

1. income that is available for someone to spend over a period of time
2. goods purchased together because they are consumed together
4. companies, organisations or businesses
5. where PED = –1(the responsiveness of demand is proportionately equal to the change in price)
6. goods for which demand will fall when people’s income goes up
7. the relationship between A and B when A goes up, B goes down
10. Money paid by government or organisations to make price lower, reducing the cost of producing goods or services