IGCSE Economics Unit 2 Questions
and Answers Rated A+
Contraction in supply - ANSWER-movement along the supply curve to the left (lower
price & lower quantity supplied).
Decrease in Demand - ANSWER-A shift to the left of the demand curve caused by
changes other than price
Decrease in supply - ANSWER-A shift to the left of the supply curve caused by changes
other than price
Demand - ANSWER-The ability and willingness to buy a product.
Demerit Goods - ANSWER-goods that are perceived to have a negative impact/effect
on society/individuals.
Direct provision - ANSWER-Governments supply goods and/or services to consumers
Economic Systems - ANSWER-The institutions, organisations and mechanisms that
influence economic behaviour and determine how resources are allocated.
Effective Demand - ANSWER-the financial ability to actually purchase the product.
Elasticity - ANSWER-the responsiveness of quantity supplied or demanded in relation to
changes in price.
Equilibrium - ANSWER-the point at which the supply and demand curves cross/intersect
Excess Demand - ANSWER-quantity demanded is greater than the quantity supplied at
a given price.
Excess Supply - ANSWER-quantity supplied is greater than quantity demanded at a
given price.
Extension in demand - ANSWER-a movement along the demand curve to the right
(lower price & higher quantity demanded).
Extension in supply - ANSWER-a movement along the supply curve to the right (higher
price & higher quantity supplied).
External benefits - ANSWER-benefit of production to others outside the firm/individual
(1st aid training for employees)
and Answers Rated A+
Contraction in supply - ANSWER-movement along the supply curve to the left (lower
price & lower quantity supplied).
Decrease in Demand - ANSWER-A shift to the left of the demand curve caused by
changes other than price
Decrease in supply - ANSWER-A shift to the left of the supply curve caused by changes
other than price
Demand - ANSWER-The ability and willingness to buy a product.
Demerit Goods - ANSWER-goods that are perceived to have a negative impact/effect
on society/individuals.
Direct provision - ANSWER-Governments supply goods and/or services to consumers
Economic Systems - ANSWER-The institutions, organisations and mechanisms that
influence economic behaviour and determine how resources are allocated.
Effective Demand - ANSWER-the financial ability to actually purchase the product.
Elasticity - ANSWER-the responsiveness of quantity supplied or demanded in relation to
changes in price.
Equilibrium - ANSWER-the point at which the supply and demand curves cross/intersect
Excess Demand - ANSWER-quantity demanded is greater than the quantity supplied at
a given price.
Excess Supply - ANSWER-quantity supplied is greater than quantity demanded at a
given price.
Extension in demand - ANSWER-a movement along the demand curve to the right
(lower price & higher quantity demanded).
Extension in supply - ANSWER-a movement along the supply curve to the right (higher
price & higher quantity supplied).
External benefits - ANSWER-benefit of production to others outside the firm/individual
(1st aid training for employees)
