Key concepts
The concept or idea of fairness
Equity
The father of modern economics and the man behind the invisible hand
Adam Smith
Describes the fluctations in economic activity
Business cycle model
The additional cost of producing one more unit of output
Marginal costs
Current reigning monarch in Great Britain
King Charles III
All economic actors, interact with each other within and, increasingly, across nations in order to achieve economic goals.
Interdependence
Advocate for government intervention during economic downturns to stabillize economies
John M. Keynes
AD-AS
The additional cost to society of producing one more unit of a good
Marginal social cost
The nickname for the London Underground
The Tube
Refers to the limited availability of economic resources relative to society’s unlimited demand for goods and services.
Scarcity
Author of "Capital: Critique of Political Economy"
Karl Marx
Curve representing the maximum combination of goods and services that an economy can produce given its resources and technology
Production possibility curve
The additional output that results from one additional unit of a variable input (such as labour)
Marginal product
District in London known for its theatres
A quantifiable concept, determined by the ratio of useful output to total input.
Efficiency
Defender of classical liberalism and critic of centralized economic planning.
Friedrich Hayek
Illustrates income and wealth inequality within a population
The money you pay to the government on your additional income
Marginal tax rate
Home of the England national football team
Wembley Stadium
A multidimensional concept relating to the level of prosperity and quality of living standards enjoyed by members of an economy.
Economic well-being
French economists and the author behind "Capital in the 21st Century". Known for his researvh on income and wealth inequlity.
Thomas Piketty
Diagram showing the value of output produced in an economy is equal to the total income genrated in producing that output
Circular flow of income
The fraction of additional income spent on domestically produced goods and services
Marginal propensity to consume
The official name of Big Ben
Elizabeth Tower