IB Economics/Microeconomics/Key Terms

Key Terms Abnormal profits (HL) Accounting cost/profit (HL) Ad valorem tax (HL) Allocative efficiency (HL) Average costs (HL) Average revenue (HL) Barriers to entry (HL) Break even price (HL) Buffer stock scheme *Not needed in the current syllabus. Cartel (HL) Collusive oligopoly (HL) Commodity Commodity agreements Contestable market (HL) Cross price elasticity Demand Demerit goods Diminishing marginal returns (HL) Direct tax Diseconomies of scale (HL) Economic cost/profit (HL) Economies of scale (HL) Elasticity Elastic demand Elastic supply Equilibrium price Externalities Fixed costs (HL) Flat rate tax (specific tax) (HL) Giffen goods (HL) Incidence of tax (HL) Income elasticity Indirect tax Inelasticity Inelastic demand Inelastic supply Inferior goods Law of demand Law of diminishing average returns (HL) Law of diminishing marginal returns (HL) Law of supply Long run (HL) Market Market failure Market success Marginal costs (HL) Marginal revenue (HL) Maximum price Merit goods Minimum price Monopolistic competition (HL) Monopoly (HL) Natural monopoly (HL) Negative externalities Non-collusive oligopoly (HL) Normal goods Normal profits (HL) Oligopoly (HL) Perfect competition (HL) Positive externalities Price discrimination (HL) Price elasticity of demand Price elasticity of supply Product differentiation (HL) Productive efficiency (HL) Profit-maximizing level of output (HL) Public goods Quotas Short run (HL) Shut down price (HL) Subsidy Supply Sustainable development Total costs (HL) Total revenue (HL) Tradeable permits Variable costs (HL) Veblem goods (HL)