Absolute Advantage

Absolute advantage occurs when one producer can produce more of a good with fewer inputs than another. If a country can

Theme 1: Introduction to Markets and Market Failure

Aggregate Demand

Aggregate demand (AD) is the total spending on goods and services produced within an economy at different overall price

Theme 2: The UK Economy

Aggregate Supply

Aggregate supply (AS) represents the total output firms are willing to supply at different price levels. It includes sho

Theme 2: The UK Economy

Allocative Efficiency

Allocative efficiency occurs when resources are distributed to produce the combination of goods that maximises total wel

Theme 1: Introduction to Markets and Market Failure