IGCSE Economics |Graded A+| #Latest Study Guide

IGCSE Economics |Graded A+| #Latest Study Guide Opportunity cost *Ans* A cost of choosing one thing over the next best alternative. The economic problem *Ans* The idea that resources are scare and wants are unlimited Economy *Ans* Where people produce goods and services. Market *Ans* Where a group of people willing to exchange goods and services meet. Perfect market *Ans* Neither Consumer/producer solely influence the price charged for goods and services Imperfect market *Ans* a powerful consumer or producer can influence prices The four factors of production *Ans* Land, Capital, Labour, Enterprise Consumer Goods *Ans* products bought by consumers to satisfy their wants The two types of consumer goods *Ans* durable consumer good which can last a long time and a non-durable consumer good which does not last long. Capital goods *Ans* Man made resources produced by labour which can help in the production of other goods and services. Public goods *Ans* a good is offered by the government since no private firm would be willing to produce it Merit goods *Ans* a good/service offered by the government since it feels that people need them regardless whether they can pay for them Private wealth *Ans* goods and services owned by entrepreneurs and people in the private sector Social wealth *Ans* goods and services owned by the government in the public sector National wealth *Ans* both pri