AQA · International A Level · HL/SL
Economics — Keywords & Key Terms — Definitions Glossary (2026)
IB Diploma Programme Economics (HL/SL)
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.
IB Diploma Programme Economics (HL/SL)
IB Diploma Programme Economics (HL/SL)
IB Diploma Programme Economics (HL/SL)
Topics follow the IB DP Economics syllabus (first assessment 2022). HL students cover additional HL content in microeconomics, macroeconomics and global economy. IB Economics rewards real-world examples and evaluation.
Mark schemes: IB Economics mark schemes reward: precise definitions, correctly labelled diagrams, application to real-world examples, and balanced evaluation. Paper 1 extended responses require analysis AND evaluation for maximum marks.
Active recall: 0 / 52 terms ticked
| Recalled | Topic | Level | Keyword | Definition |
|---|---|---|---|---|
| Microeconomics — Markets | Essential | Scarcity | The fundamental economic problem: unlimited wants but limited resources. | |
| Microeconomics — Markets | Essential | Opportunity cost | The next best alternative forgone when making a choice. | |
| Microeconomics — Markets | Essential | Demand | The quantity of a good or service that consumers are willing and able to buy at various prices, ceteris paribus. | |
| Microeconomics — Markets | Essential | Supply | The quantity of a good or service that producers are willing and able to sell at various prices, ceteris paribus. | |
| Microeconomics — Markets | Core | Law of demand | Inverse relationship between price and quantity demanded, ceteris paribus. | |
| Microeconomics — Markets | Core | Law of supply | Direct relationship between price and quantity supplied, ceteris paribus. | |
| Microeconomics — Markets | Core | Equilibrium price | Price at which quantity demanded equals quantity supplied; the market clears. | |
| Microeconomics — Markets | Core | Ceteris paribus | Latin: all other things being equal; the assumption that other variables remain unchanged. | |
| Microeconomics — Markets | Core | Price elasticity of demand (PED) | Responsiveness of quantity demanded to a change in price: PED = %ΔQd / %ΔP. | |
| Microeconomics — Markets | Core | Price elasticity of supply (PES) | Responsiveness of quantity supplied to a change in price: PES = %ΔQs / %ΔP. | |
| Microeconomics — Markets | Core | Income elasticity of demand (YED) | Responsiveness of demand to a change in income: YED = %ΔQd / %ΔY. | |
| Microeconomics — Markets | Core | Cross elasticity of demand (XED) | Responsiveness of demand for one good to a change in price of another. | |
| Microeconomics — Markets | Core | Consumer surplus | Difference between what consumers are willing to pay and what they actually pay. | |
| Microeconomics — Markets | Core | Producer surplus | Difference between the price producers receive and their minimum acceptable price. | |
| Microeconomics — Markets | Advanced | Market failure | Situation where free market forces lead to an inefficient allocation of resources. | |
| Microeconomics — Markets | Advanced | Externality | Cost or benefit that falls on a third party not involved in the transaction. | |
| Microeconomics — Markets | Advanced | Public good | Good that is non-excludable and non-rivalrous; undersupplied by the market. | |
| Macroeconomics | Essential | GDP (Gross Domestic Product) | Total monetary value of all goods and services produced within a country in a given period. | |
| Macroeconomics | Core | Aggregate demand (AD) | Total demand for goods and services in an economy: AD = C + I + G + (X – M). | |
| Macroeconomics | Core | Aggregate supply (AS) | Total output that all producers in an economy are willing and able to supply at each price level. | |
| Macroeconomics | Core | Consumption (C) | Total spending by households on goods and services. | |
| Macroeconomics | Core | Investment (I) | Spending on capital goods that increase future productive capacity. | |
| Macroeconomics | Core | Government expenditure (G) | Government spending on goods and services (excludes transfer payments). | |
| Macroeconomics | Core | Net exports (X – M) | Value of exports minus imports; positive = trade surplus, negative = trade deficit. | |
| Macroeconomics | Core | Inflation | Sustained increase in the general price level of goods and services. | |
| Macroeconomics | Core | Unemployment rate | Percentage of the labour force that is actively seeking but unable to find work. | |
| Macroeconomics | Core | Economic growth | Increase in real GDP over time; shown by outward shift of PPC or LRAS. | |
| Macroeconomics | Core | Fiscal policy | Government use of taxation and expenditure to influence aggregate demand. | |
| Macroeconomics | Core | Monetary policy | Use of interest rates and money supply by central banks to influence economic activity. | |
| Macroeconomics | Core | Supply-side policies | Policies aimed at increasing productive capacity and shifting LRAS to the right. | |
| Macroeconomics | Core | Multiplier effect | A change in injection leads to a larger final change in national income: k = 1/MPS. | |
| Macroeconomics | Advanced | Phillips curve | Short-run inverse relationship between inflation and unemployment. | |
| Macroeconomics | Advanced | Lorenz curve | Graphical representation of income distribution; used to calculate the Gini coefficient. | |
| Macroeconomics | Advanced | Gini coefficient | Measure of income inequality: 0 = perfect equality, 1 = maximum inequality. | |
| International Economics | Core | Comparative advantage | Ability to produce a good at a lower opportunity cost than another country; basis for trade. | |
| International Economics | Core | Absolute advantage | Ability to produce more of a good with the same resources as another country. | |
| International Economics | Core | Terms of trade | Ratio of export prices to import prices; improvement means exports buy more imports. | |
| International Economics | Core | Current account | Record of a country's trade in goods, services, primary and secondary income. | |
| International Economics | Core | Balance of payments | Record of all economic transactions between a country and the rest of the world. | |
| International Economics | Core | Exchange rate | Price of one currency in terms of another. | |
| International Economics | Core | Appreciation | Increase in value of a currency in a floating exchange rate system. | |
| International Economics | Core | Depreciation | Decrease in value of a currency in a floating exchange rate system. | |
| International Economics | Advanced | Protectionism | Government policies that restrict imports to protect domestic industries. | |
| International Economics | Advanced | Trade liberalisation | Removal of trade barriers; promotes free trade and efficiency. | |
| Development Economics | Core | Economic development | Improvement in living standards, health, education and well-being beyond GDP growth. | |
| Development Economics | Core | Human Development Index (HDI) | Composite measure of development combining life expectancy, education and GNI per capita. | |
| Development Economics | Core | Poverty cycle | Self-reinforcing pattern where low income → low savings → low investment → low growth → low income. | |
| Development Economics | Core | Sustainable development | Development that meets current needs without compromising future generations' ability to meet their own needs. | |
| Development Economics | Core | Foreign direct investment (FDI) | Investment by a company in production in another country. | |
| Development Economics | Core | Microfinance | Financial services (small loans) provided to individuals in developing countries who lack access to traditional banking. | |
| Development Economics | Advanced | Washington Consensus | Set of free-market policy prescriptions for developing countries: privatisation, deregulation, fiscal discipline. | |
| Development Economics | Advanced | Dependency theory | View that developing countries remain dependent on developed countries due to structural economic relationships. |
Pair this with our revision checklists, formula sheets hub and past paper finder.
Economics (HL/SL) — Keywords & Key Terms FAQ
- What is on this AQA 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 IB Diploma Programme Economics (HL/SL) (HL/SL). 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 (HL/SL) 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 HL/SL specification?
- Topic groupings and wording follow IB Diploma Programme Economics (HL/SL) for AQA 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.