Cambridge International · International A Level · 9708
Economics — Keywords & Key Terms — Definitions Glossary (2026)
Cambridge International A Level Economics (9708)
Topic-by-topic keywords, key terms and definitions for precise exam language—separate from our revision checklists (topic coverage) and formula sheets (equations).
Keywords & Key Terms — definitions
Examiner-style keywords and definitions organised by syllabus topic. Terms are tagged Essential (start here), Core (typical exam standard), and Advanced for harder distinctions — tick each row when you can recall it. Your progress is saved in this browser for this list.
Cambridge International International A Level Economics (9708)
Cambridge International International A Level Economics (9708)
Cambridge International A Level Economics (9708)
Cambridge 9708 is structured into AS and A Level microeconomics (scarcity, markets, elasticities, market failure, labour, theory of firm) and macroeconomics (circular flow, AD/AS, objectives, policies, inflation, unemployment, exchange rates, international trade, development). Essay papers reward chains of reasoning plus evaluation.
Mark schemes: Definitions: one clear sentence with key terms. Diagrams: axes labelled, curves named, shifts vs movements shown, equilibrium before/after identified. Evaluation: consider magnitude, time lags, stakeholders, and assumptions (ceteris paribus). Data response: use evidence from extract with explicit links to theory.
Active recall: 0 / 39 terms ticked
| Recalled | Topic | Level | Keyword | Definition |
|---|---|---|---|---|
| Scarcity, demand & supply | Essential | Resources | Land, labour, capital, enterprise — factors of production. | |
| Scarcity, demand & supply | Core | Opportunity cost | Best alternative foregone when a choice is made. | |
| Scarcity, demand & supply | Core | Demand | Quantity consumers willing and able to buy at each price — schedule and curve. | |
| Scarcity, demand & supply | Core | Supply | Quantity producers willing to sell at each price. | |
| Scarcity, demand & supply | Core | Market equilibrium | Qd = Qs — no tendency to change unless shift. | |
| Scarcity, demand & supply | Core | Consumer surplus | Sum of (willingness to pay − price) over units. | |
| Scarcity, demand & supply | Core | Producer surplus | Sum of (price − minimum acceptable price). | |
| Scarcity, demand & supply | Advanced | PED | Responsiveness of Qd to price — determinants and effect on revenue. | |
| Scarcity, demand & supply | Core | Income elasticity YED | Normal vs inferior goods. | |
| Scarcity, demand & supply | Core | Cross elasticity XED | Substitutes vs complements. | |
| Market failure & government | Core | Externality | Spillover cost or benefit on third parties. | |
| Market failure & government | Core | MSC vs MSB | Marginal social cost and benefit — social optimum where MSC = MSB. | |
| Market failure & government | Core | Public good | Non-rival, non-excludable — free rider problem. | |
| Market failure & government | Core | Merit / demerit good | Information failure — under- or over-consumption. | |
| Market failure & government | Core | Indirect tax / subsidy | Shifts supply; corrects externalities if set at marginal external cost/benefit. | |
| Market failure & government | Advanced | Tradeable permits | Market-based cap on pollution. | |
| Theory of the firm & labour | Core | Fixed vs variable cost | Short-run cost behaviour. | |
| Theory of the firm & labour | Core | Law of diminishing returns | As variable factor added to fixed factors, eventually MP falls. | |
| Theory of the firm & labour | Core | Economies / diseconomies of scale | LRAC falls then rises — reasons. | |
| Theory of the firm & labour | Core | Perfect competition | Many firms; homogeneous product; P = MC in long-run equilibrium. | |
| Theory of the firm & labour | Core | Monopoly | Single seller; downward sloping demand; barriers to entry. | |
| Theory of the firm & labour | Core | Monopolistic competition | Many firms; differentiated product; some market power. | |
| Theory of the firm & labour | Core | Oligopoly | Few interdependent firms — kinked demand, game theory, collusion risks. | |
| Theory of the firm & labour | Advanced | Marginal revenue product of labour | Extra revenue from hiring one more worker — derived demand. | |
| Macroeconomics — AD, AS & policies | Core | Components of AD | C + I + G + (X − M). | |
| Macroeconomics — AD, AS & policies | Core | SRAS / LRAS | Short-run upward sloping; long-run vertical at full employment output. | |
| Macroeconomics — AD, AS & policies | Core | Multiplier | Initial injection leads to larger final ΔY — size depends on MPC/MPS. | |
| Macroeconomics — AD, AS & policies | Core | Inflation | Sustained rise in general price level — demand-pull vs cost-push. | |
| Macroeconomics — AD, AS & policies | Core | Unemployment | Frictional, structural, cyclical, seasonal — natural rate concept. | |
| Macroeconomics — AD, AS & policies | Core | Fiscal policy | Taxation and government spending — automatic stabilisers. | |
| Macroeconomics — AD, AS & policies | Core | Monetary policy | Interest rates, money supply, quantitative easing — simplified. | |
| Macroeconomics — AD, AS & policies | Advanced | Phillips curve | Short-run inflation–unemployment trade-off; long-run vertical at NAIRU. | |
| International & development | Core | Comparative advantage | Lower opportunity cost — basis for specialisation. | |
| International & development | Core | Terms of trade | Index of export prices ÷ import prices × 100. | |
| International & development | Core | Current account | Trade balance, income, current transfers. | |
| International & development | Core | Exchange rate | Price of domestic currency in foreign currency. | |
| International & development | Advanced | Marshall–Lerner | Depreciation improves trade balance if PEDx + PEDm > 1 (longer run). | |
| International & development | Core | J-curve | Short-run worsening after depreciation before improvement. | |
| International & development | Core | HDI | Composite development indicator — health, education, income. |
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Economics (9708) — Keywords & Key Terms FAQ
- What is on this Cambridge International International A Level Economics keywords and key terms list?
- It is a topic-organised glossary of important economics terms with short, exam-style definitions aligned to Cambridge International A Level Economics (9708) (9708). It is designed for “define”, “state”, “outline” and “explain” questions where precise vocabulary earns marks.
- How should I use this Economics glossary alongside past papers?
- Tick terms when you can recall them without reading the answer, then check your wording against mark schemes. Pair vocabulary practice with past papers for International A Level Economics (9708) so you apply terms in context.
- Is this the same as a revision checklist or a formula sheet?
- No. Revision checklists help you track which syllabus topics you have covered and your confidence—separate pages on Tutopiya. Formula sheets summarise equations and quantitative relationships. This page is only a definitions and key-terms glossary for Economics.
- Can I download this Economics keywords and key terms list for free?
- Yes. After a quick free sign-up you can download a UTF-8 CSV (opens in Excel or Google Sheets) or open a print-friendly page and save as PDF. Browsing the list on the page is free.
- Is this Economics list aligned to the 9708 specification?
- Topic groupings and wording follow Cambridge International A Level Economics (9708) for Cambridge International International A Level. Always confirm final learning objectives and any regional options in your official specification and recent examiner reports for your exam session.
- Why focus on definitions instead of full notes?
- Mark schemes reward correct technical terms and clear links between ideas. A compact glossary lets you drill the exact language examiners expect for Economics at International A Level, separate from longer notes or topic trackers.