2024 EDEXCEL A-LEVEL ECONOMICS B PAPER 1
Economics - (answers)The study of the allocation of scarce resources.
Economic Goods - (answers)Resources that are scarce.
Short Run - (answers)A time period where at least one factor of production is
fixed.
Long Run - (answers)A time period where all factors of production are variable.
Productivity - (answers)The output per unit of input.
The Economic Problem - (answers)Resources are scarce but wants are infinite.
Scarcity - (answers)The world's resources are limited, there are only limited
amounts of land, water, oil, food, etc..
Therefore, resources are scarce.
Free Goods - (answers)Goods that are unlimited in supply and therefore have no
opportunity cost.
Economic Agents - (answers)Consumer, Business and Governments.
Agents involved in Economic transactions.
,Production Possibility Frontier - (answers)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 - (answers)The next best alternative foregone.
Economic Growth - (answers)Increase an economy's productive potential.
Capital Goods - (answers)Goods intended for use in production, rather than by
consumers.
Consumer Goods - (answers)Goods designed for use by final consumers.
Renewable Resources - (answers)A resource whose stock level can be replenished
naturally over a period of time.
Non-renewable Resources - (answers)A resource whose stock level decreases over
time as it is consumed.
Ceteris Paribus - (answers)'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 - (answers)A statement based on facts which can be tested as
true or false and are value-free.
, Normative Statement - (answers)A statement based on value judgements which
cannot be tested as true or false.
Adam Smith - (answers)The Father of Economics;
- The Invisible Hand (workings of the Price Mechanism)
- Specialisation
- Division of Labour
Division of Labour - (answers)Specialisation of workers on specific tasks in the
production process.
Specialisation - (answers)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 - (answers)An exchange of goods/services for other goods/services.
- Does not involve money.
- Double coincidence of wants.
Money - (answers)Anything which is acceptable to a wide number of people and
organisations as payment for goods and services.
Free Market Economy - (answers)Where all resources are privately owned and
allocated via the price mechanism. There is minimal government intervention.
Economics - (answers)The study of the allocation of scarce resources.
Economic Goods - (answers)Resources that are scarce.
Short Run - (answers)A time period where at least one factor of production is
fixed.
Long Run - (answers)A time period where all factors of production are variable.
Productivity - (answers)The output per unit of input.
The Economic Problem - (answers)Resources are scarce but wants are infinite.
Scarcity - (answers)The world's resources are limited, there are only limited
amounts of land, water, oil, food, etc..
Therefore, resources are scarce.
Free Goods - (answers)Goods that are unlimited in supply and therefore have no
opportunity cost.
Economic Agents - (answers)Consumer, Business and Governments.
Agents involved in Economic transactions.
,Production Possibility Frontier - (answers)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 - (answers)The next best alternative foregone.
Economic Growth - (answers)Increase an economy's productive potential.
Capital Goods - (answers)Goods intended for use in production, rather than by
consumers.
Consumer Goods - (answers)Goods designed for use by final consumers.
Renewable Resources - (answers)A resource whose stock level can be replenished
naturally over a period of time.
Non-renewable Resources - (answers)A resource whose stock level decreases over
time as it is consumed.
Ceteris Paribus - (answers)'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 - (answers)A statement based on facts which can be tested as
true or false and are value-free.
, Normative Statement - (answers)A statement based on value judgements which
cannot be tested as true or false.
Adam Smith - (answers)The Father of Economics;
- The Invisible Hand (workings of the Price Mechanism)
- Specialisation
- Division of Labour
Division of Labour - (answers)Specialisation of workers on specific tasks in the
production process.
Specialisation - (answers)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 - (answers)An exchange of goods/services for other goods/services.
- Does not involve money.
- Double coincidence of wants.
Money - (answers)Anything which is acceptable to a wide number of people and
organisations as payment for goods and services.
Free Market Economy - (answers)Where all resources are privately owned and
allocated via the price mechanism. There is minimal government intervention.
