Economics GCSE
Interdependence
What Interdependence means in Economics GCSE, as defined for AQA.
Definitions of Interdependence
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Interdependence in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
A defining feature where the actions of one firm, such as changing prices or launching a new advertising campaign, directly affect its rivals, prompting them to react.
The way the three sectors interact within a production chain, for example a farmer grows wheat, a bakery turns it into bread, and a supermarket sells it to a customer.
The way the three main economic groups rely on each other through their interactions, such as buying a product linking a consumer and a producer.
A situation in an oligopoly where the actions of one firm directly affect the others, often leading to price rigidity and non-price competition.
Agents no longer produce everything they need, so they rely on one another, allowing economies to function efficiently.
Topics that use Interdependence
- Economic activity (AQA GCSE)
- Economic sectors (AQA GCSE)
- Non-competitive markets (AQA GCSE)
- Specialisation, division of labour, and exchange (AQA GCSE)
Related terms
- Goods
- Services
- Barriers to entry
- Basic economic problem
- Circular flow of income
- Consumer welfare
- Consumers
- Deindustrialisation
Using Interdependence in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
Start free
All Economics GCSE termsA week of Premium from your first lesson · Then the free plan continues · No card, no charge