Edexcel A-level Economics Paper 1 Exam
Questions With Correct Answers
Economics - CORRECT ANSWER✔✔-The study of the allocation of scarce
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resources.
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Economic Goods - CORRECT ANSWER✔✔-Resources that are scarce.
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Short Run - CORRECT ANSWER✔✔-A time period where at least one
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factor of production is fixed.
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Long Run - CORRECT ANSWER✔✔-A time period where all factors of
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production are variable. | |
Productivity - CORRECT ANSWER✔✔-The output per unit of input.
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The Economic Problem - CORRECT ANSWER✔✔-Resources are scarce
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but wants are infinite.
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Scarcity - CORRECT ANSWER✔✔-The world's resources are limited,
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there are only limited amounts of land, water, oil, food, etc..
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,Therefore, resources are scarce. | | |
Free Goods - CORRECT ANSWER✔✔-Goods that are unlimited in supply
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and therefore have no opportunity cost.
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Economic Agents - CORRECT ANSWER✔✔-Consumer, Business and
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Governments. |
Agents involved in Economic transactions.
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Production Possibility Frontier - CORRECT ANSWER✔✔-The maximum
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potential output of a combination of goods an economy can achieve
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when all its resources are fully and efficiently employed, given the level
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of technology.
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Opportunity Cost - CORRECT ANSWER✔✔-The next best alternative
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foregone.
Economic Growth - CORRECT ANSWER✔✔-Increase an economy's
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productive potential. |
Capital Goods - CORRECT ANSWER✔✔-Goods intended for use in
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production, rather than by consumers. | | | |
,Consumer Goods - CORRECT ANSWER✔✔-Goods designed for use by
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final consumers.
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Renewable Resources - CORRECT ANSWER✔✔-A resource whose stock
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level can be replenished naturally over a period of time.
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Non-renewable Resources - CORRECT ANSWER✔✔-A resource whose | | | | | | |
stock level decreases over time as it is consumed.
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Ceteris Paribus - CORRECT ANSWER✔✔-'All other things (factors)
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remaining the same' | |
The assumption that all other variables within a model remain constant
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whilst the change is being considered.
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Positive Statement - CORRECT ANSWER✔✔-A statement based on facts
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which can be tested as true or false and are value-free.
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Normative Statement - CORRECT ANSWER✔✔-A statement based on
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value judgements which cannot be tested as true or false.
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Adam Smith - CORRECT ANSWER✔✔-The Father of Economics;
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- The Invisible Hand (workings of the Price Mechanism)
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- Specialisation
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, - Division of Labour
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Division of Labour - CORRECT ANSWER✔✔-Specialisation of workers on
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specific tasks in the production process.
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Specialisation - CORRECT ANSWER✔✔-The process of breaking down
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the production process into steps and then each worker is assigned a
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step. This would then increase labour productivity (Output per Worker).
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Barter - CORRECT ANSWER✔✔-An exchange of goods/services for other
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goods/services.
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- Does not involve money.
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- Double coincidence of wants.
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Money - CORRECT ANSWER✔✔-Anything which is acceptable to a wide
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number of people and organisations as payment for goods and services.
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Free Market Economy - CORRECT ANSWER✔✔-Where all resources are
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privately owned and allocated via the price mechanism. There is
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minimal government intervention.| |
Command Economy - CORRECT ANSWER✔✔-Where there is public
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ownership of resources and these are allocated by the government.
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Questions With Correct Answers
Economics - CORRECT ANSWER✔✔-The study of the allocation of scarce
| | | | | | | | |
resources.
|
Economic Goods - CORRECT ANSWER✔✔-Resources that are scarce.
| | | | | | |
Short Run - CORRECT ANSWER✔✔-A time period where at least one
| | | | | | | | | | |
factor of production is fixed.
| | | |
Long Run - CORRECT ANSWER✔✔-A time period where all factors of
| | | | | | | | | | |
production are variable. | |
Productivity - CORRECT ANSWER✔✔-The output per unit of input.
| | | | | | | |
The Economic Problem - CORRECT ANSWER✔✔-Resources are scarce
| | | | | | | |
but wants are infinite.
| | |
Scarcity - CORRECT ANSWER✔✔-The world's resources are limited,
| | | | | | | |
there are only limited amounts of land, water, oil, food, etc..
| | | | | | | | | |
,Therefore, resources are scarce. | | |
Free Goods - CORRECT ANSWER✔✔-Goods that are unlimited in supply
| | | | | | | | | |
and therefore have no opportunity cost.
| | | | |
Economic Agents - CORRECT ANSWER✔✔-Consumer, Business and
| | | | | | |
Governments. |
Agents involved in Economic transactions.
| | | |
Production Possibility Frontier - CORRECT ANSWER✔✔-The maximum
| | | | | | |
potential output of a combination of goods an economy can achieve
| | | | | | | | | | |
when all its resources are fully and efficiently employed, given the level
| | | | | | | | | | | |
of technology.
|
Opportunity Cost - CORRECT ANSWER✔✔-The next best alternative
| | | | | | | |
foregone.
Economic Growth - CORRECT ANSWER✔✔-Increase an economy's
| | | | | | |
productive potential. |
Capital Goods - CORRECT ANSWER✔✔-Goods intended for use in
| | | | | | | | |
production, rather than by consumers. | | | |
,Consumer Goods - CORRECT ANSWER✔✔-Goods designed for use by
| | | | | | | | |
final consumers.
|
Renewable Resources - CORRECT ANSWER✔✔-A resource whose stock
| | | | | | | |
level can be replenished naturally over a period of time.
| | | | | | | | |
Non-renewable Resources - CORRECT ANSWER✔✔-A resource whose | | | | | | |
stock level decreases over time as it is consumed.
| | | | | | | |
Ceteris Paribus - CORRECT ANSWER✔✔-'All other things (factors)
| | | | | | | |
remaining the same' | |
The assumption that all other variables within a model remain constant
| | | | | | | | | | |
whilst the change is being considered.
| | | | |
Positive Statement - CORRECT ANSWER✔✔-A statement based on facts
| | | | | | | | |
which can be tested as true or false and are value-free.
| | | | | | | | | |
Normative Statement - CORRECT ANSWER✔✔-A statement based on
| | | | | | | |
value judgements which cannot be tested as true or false.
| | | | | | | | |
Adam Smith - CORRECT ANSWER✔✔-The Father of Economics;
| | | | | | |
- The Invisible Hand (workings of the Price Mechanism)
| | | | | | | |
- Specialisation
| |
, - Division of Labour
| | |
Division of Labour - CORRECT ANSWER✔✔-Specialisation of workers on
| | | | | | | | |
specific tasks in the production process.
| | | | |
Specialisation - CORRECT ANSWER✔✔-The process of breaking down
| | | | | | | |
the production process into steps and then each worker is assigned a
| | | | | | | | | | | |
step. This would then increase labour productivity (Output per Worker).
| | | | | | | | |
Barter - CORRECT ANSWER✔✔-An exchange of goods/services for other
| | | | | | | |
goods/services.
|
- Does not involve money.
| | | |
- Double coincidence of wants.
| | | |
Money - CORRECT ANSWER✔✔-Anything which is acceptable to a wide
| | | | | | | | | |
number of people and organisations as payment for goods and services.
| | | | | | | | | |
Free Market Economy - CORRECT ANSWER✔✔-Where all resources are
| | | | | | | | |
privately owned and allocated via the price mechanism. There is
| | | | | | | | | |
minimal government intervention.| |
Command Economy - CORRECT ANSWER✔✔-Where there is public
| | | | | | | |
ownership of resources and these are allocated by the government.
| | | | | | | | |
