Revision for final

4. the merger of firms producing the same product and at the same stage of production
6. money a firm earns from its sales, before deducting costs of production
7. government charges imposed on income and wealth, such as income tax and inheritance tax
9. sectors producing services
11. a market structure where there is only one supplier of a good or service, with the power to affect market supply or prices
13. risk bearing and key decision making in business
17. reward to investment
18. decisions on government spending and taxation designed to influence aggregate demand
20. taxes imposed on expenditure.i.e. sales taxes such as value added tax (VAT)
22. a situation where there is not enough to satisfy everyone’s wants
24. characteristic of money that make it easy to carry money around
25. cost which do not change with output in the short run
26. cost that change with output
27. function of money enables the value of different items to be compared as prices are expressed in money terms

1. characteristic of money that each unit of money must be identical
2. the merger of one firm with another firm that either provides an outlet for its products or supplies it with raw materials, components or the products it sells
3. function of money that enable people buy and sell
5. goods or services which when consumed create positive spillover effects in an economy, e.g. education, training and health care
8. an increase in the output of an economy and in the long run, an increase in the economy’s productive potential
10. one which takes a larger percentage of the income or wealth of the poor
12. reward to land
14. function of money that enable people to save
15. benefits received by those directly consuming or producing a product
16. benefits enjoyed by those who are not involved in the consumption and production activities of others directly
19. reward to enterprise
21. one which takes a larger percentage of the income or wealth of the rich
23. reward to labour
28. the best alternative forgone