OCR · A Level · H460
Economics — Keywords & Key Terms — Definitions Glossary (2026)
OCR A Level Economics (H460)
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.
OCR A Level Economics (H460)
OCR A Level Economics (H460)
OCR A Level Economics (H460)
OCR Economics (H460) covers microeconomics (markets, market failure, theory of the firm, labour), macroeconomics (AD/AS, policy objectives, inflation, unemployment), the global context (trade, exchange rates, balance of payments) and economic development — assessed across Papers 1–3.
Mark schemes: OCR rewards clear definitions, accurately drawn and labelled diagrams (axes, curves, equilibria, shifts), and chains of reasoning that link cause to effect. Evaluation should weigh magnitude, time lags, stakeholder impacts and underlying assumptions; data-response answers must use specific evidence from the extract.
Active recall: 0 / 21 terms ticked
| Recalled | Topic | Level | Keyword | Definition |
|---|---|---|---|---|
| Microeconomics — markets & firms | Essential | Opportunity cost | Value of the next-best alternative foregone when a choice is made. | |
| Microeconomics — markets & firms | Core | PED, YED and XED | Elasticities measuring responsiveness of Qd to price, income and other goods' prices. | |
| Microeconomics — markets & firms | Core | PES | Price elasticity of supply: %ΔQs ÷ %ΔP, depending on time and spare capacity. | |
| Microeconomics — markets & firms | Core | Market failure & externalities | Spillover costs/benefits to third parties cause MSC ≠ MSB and welfare loss. | |
| Microeconomics — markets & firms | Core | Profit maximisation | Output where marginal revenue equals marginal cost: MR = MC. | |
| Microeconomics — markets & firms | Advanced | Market structures | Perfect competition, monopoly and oligopoly differ in firms, entry barriers and price-setting power. | |
| Macroeconomics — AD, AS & policy | Core | Aggregate demand | AD = C + I + G + (X − M); total planned spending on domestic output. | |
| Macroeconomics — AD, AS & policy | Core | Multiplier | Final ΔY ÷ initial injection; equals 1/(1 − MPC) in a closed economy with no tax. | |
| Macroeconomics — AD, AS & policy | Core | Phillips curve | Short-run trade-off between inflation and unemployment; long-run vertical at NAIRU. | |
| Macroeconomics — AD, AS & policy | Advanced | Laffer curve | Tax revenue rises then falls as the tax rate increases beyond an optimal point. | |
| Macroeconomics — AD, AS & policy | Core | Lorenz curve and Gini | Graphical and numerical measures of income or wealth inequality (Gini = 0 equal, 1 unequal). | |
| International economics | Core | Comparative advantage | Country specialises in goods it produces at lower opportunity cost — basis for trade gains. | |
| International economics | Core | Balance of payments | Record of all transactions with the rest of the world; current account covers trade, income and transfers. | |
| International economics | Core | Current account | Sum of trade balance, primary income and secondary income (transfers). | |
| International economics | Core | Exchange rate | Price of one currency expressed in another; floating, fixed or managed regimes. | |
| International economics | Advanced | Marshall–Lerner condition | Depreciation improves the trade balance only if PEDx + PEDm > 1. | |
| Development & policy | Core | Human Development Index | Composite indicator combining health, education and income to compare development. | |
| Development & policy | Core | Fiscal policy | Use of government spending and taxation to influence aggregate demand and supply-side outcomes. | |
| Development & policy | Core | Monetary policy | Central-bank manipulation of interest rates and money supply to meet the inflation target. | |
| Development & policy | Core | Supply-side policy | Measures to raise productive capacity (LRAS) — education, deregulation, tax incentives. | |
| Development & policy | Advanced | Policy trade-offs | Conflicts between objectives such as growth vs inflation or equity vs efficiency. |
Pair this with our revision checklists, formula sheets hub and past paper finder.
Economics (H460) — Keywords & Key Terms FAQ
- What is on this OCR 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 OCR A Level Economics (H460) (H460). 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 A Level Economics (H460) 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 H460 specification?
- Topic groupings and wording follow OCR A Level Economics (H460) for OCR 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 A Level, separate from longer notes or topic trackers.