Study guides, Class notes & Summaries

Opportunity cost correct answers A cost of choosing one thing over the next best alternative. The economic problem correct answers The idea that resources are scare and wants are unlimited Economy correct answers Where people produce goods and services. Market correct answers Where a group of people willing to exchange goods and services meet. Perfect market correct answers Neither Consumer/producer solely influence the price charged for goods and services Imperfect market correct...

IGCSE Economics Exam|100 Complete Questions and Answers

name the factors of demand - correct answer advertising, income, interest rates, fashion, population, price of complements, price of substitutes explain how advertising affects demand - correct answer a good advertising campaign keeps the good being sold on the minds of its buyers; if a company does not advertise, it will soon be forgotten and stop being competitive explain how income affects demand - correct answer when income rises, a normal good's demand rises too, however demand...

Factors affecting demand Correct Answer Advertisement, income, fashion, price, complements, substitutes. Factors affecting supply Correct Answer Cost of production, technology, natural factors. Inferior goods Correct Answer Income rises, demand falls and vice versa. Normal goods Correct Answer Income rises, demand rises and vice versa. PED Formula Correct Answer %change in quantity/%change in price Factors affecting price elasticity of supply Correct Answer Production speed, amount of spare...

Definition of opportunity cost Correct Answer the cost of the next best opportunity forgone The effects of opportunity cost on workers Correct Answer specialization The production possibility curve represents Correct Answer the maximum combination of products that can be produced in an economy How can a country be on its PPC? Correct Answer All resources are used; there is efficiency (in the use of resources) A movement along the PPC results in Correct Answer opportunity cost in o...

Economic Growth Correct Answer The increase in output of the value of the goods and services produced in a country over a period of time Supply-side Policy Correct Answer A government action which leads to an increase in aggregate supply in an economy by improving either the quality or the quantity of resources Aggregate Supply (AS) Correct Answer The total supply of goods and services in an economy Productive Capacity/Productive Potential Correct Answer The ability of an economy to pro...

Opportunity cost Correct Answer A cost of choosing one thing over the next best alternative. The economic problem Correct Answer The idea that resources are scare and wants are unlimited Economy Correct Answer Where people produce goods and services. Market Correct Answer Where a group of people willing to exchange goods and services meet. Perfect market Correct Answer Neither Consumer/producer solely influence the price charged for goods and services Imperfect market Correct Answ...

IGCSE Economics Economics - The study of how scarce resources can be allocated to satisfy people’s unlimited wants. Scarcity - When there are not enough resources to satisfy our wants and needs. Resources - The inputs that are used in the production process to produce goods and services. These are also called Factors of Production. Resources are limited.  Capital - Human-made goods that are used in the production of other goods. Payment comes in Interest  Entrepreneurs (Enterprise) ...

IGCSE Economics Section Unit 5 Revision Notes 2023. Living standards or standards of living refer to all the factors that contribute to a person’s well-being and happiness Measuring Living Standards  GDP per head/capita: this measures the average income per person in an economy. Real GDP per capita = Real GDP / Population Merits of using GDP per capita to measure living standards:  GDP is a useful measure of the total production taking place in the country, and so indicates the m...