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)