Glossary of IB Economics Terms

To excel in IB Economics, students need to have a good understanding of Economics Terminology. This is can be rather daunting for most students. In this page, we created a glossary of IB Economics terms to help students search for Economics definitions in just a few clicks. We hope you will find this tool useful.

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IB Economics Terms

All | # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

There are 6 names in this directory beginning with the letter T.

Tariff

A tax on imports

Terms of Trade (TOT)

The ratio of the average price of 3 exports over the average price of imports expressed as index numbers times 100. Shows the volume of imports attainable with a unit of exports.

Total, average and marginal product

Total product is the output derived from a specific combination of inputs. Average products (of labour) is derived on per worker. Marginal product of labour is the amount from on more unit of labour. It is the derived output from a change in labour. This is the slope of the total product curve.

Total, average and marginal revenues

Total revenues are defined as the product per unit price times the number of units sold. Average revenue is the total revenue divided by output. Marginal revenue is the extra revenue from selling one more unit of output. It is thus the change in total revenues from a change in output. This is the slope of the total revenue curve.

Trade cycle

Refer to the definition for business cycle

Transfer payments

Payments from the government to individuals that do not reflect contribution to current production. Examples of transfer payments include employment benefits and pensions