Assessment objectives Key Terms

Ceteris Paribus

A Latin phrase meaning 'all other things being equal', used to isolate the effect of one variable in economic analysis.

Substitute Goods

Goods that can replace each other; an increase in the price of one leads to an increase in demand for the other.

Elasticity

Elasticity measures how much the quantity demanded or supplied of a good responds to changes in price or income.

Substitute goods

Substitute goods are products that can be used in place of each other; an increase in the price of one will lead to an increase in demand for the other.

Elasticity

Elasticity measures the responsiveness of quantity demanded or supplied to a change in price or other factors.

Monopoly

A monopoly is a market structure where a single seller dominates the market, leading to a lack of competition.

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time.

Monetary Policy

The process by which a central bank manages the money supply and interest rates to achieve macroeconomic objectives.