OCR - Microeconomics
Economic Goods correct answers A product or service with a price and
opportunity
cost
.
Free Goods correct answers A good that is not scarce and has no
opportunity cost.
Basic Economic Problem correct answers Unlimited wants and finite
resources.
Normative Statements correct answers Subjective,
opinion.
Positive Statements correct answers
Fact.
Needs correct answers Basic necessities required
to live.
Wants correct answers Things that are not necessary to survive but
can improve
quality of
life.
Factor of Production Rewards correct answers Land
- Rent -
Labour
Wage
Capital -
Interest
Enterprise -
Profit
Strengths of the Market Economy correct answers Consumer
sovereignty.
Incentive for
innovation.
Weaknesses of the Market Economy correct answers
Underproduction
consumption of merit
and
goods.
Inequalit
y.
Opportunity Cost correct answers The next best alternative forgone
when making a
decisio
n.
Planned/Command Economy correct answers Decisions as to what to
produce, andhow who
to to produce for, are made by a central body, the
government
Mixed Economy correct answers An economic system combining private
and public
enterpris
e.
Economic Agents Objectives correct answers Consumers -
Utility.
Governments - Social
welfare.
Firms -
Profit.
, Derived Demand correct answers Business demand that ultimately
comes from
demand the
for consumer
goods.
Joint Demand correct answers Goods that are demanded
together.
Composite Demand correct answers Demand for a good with more
than one use.
Competitive Demand correct answers Demand for goods which are in
competition
each other with
(substitutes).
Consumer Surplus correct answers The amount the consumer is willing and
abledoes
but to paynot have
to.
Joint Supply correct answers Goods which are produced together, or
where the of one good involves the production of another product,
production
e.g. meat
leather (a and
by-
product).
Composite Supply correct answers Where a product produced by a firm
serves
than onemore
market.
Competitive Supply correct answers A situation where two goods compete
for the same
resources. Example: A farmer can produce wheat or corn, but producing
ore of one
means producing less of the
other.
Factors Affecting Supply correct answers
Productivity.
Indirect
taxation.
New
firms.
Technology
.Subsidies
.Weather
.Costs of
production.
Factors Affecting Demand correct answers
Population.
Advertisin
g.
Substitutes (price
of)
Income
.Fashion
.Interest
rates.
Complements (price
of)
Producer Surplus correct answers The difference between the current
market
the costprice and
of production for the
firm.
PED correct answers A measure of the responsiveness of quantity
demanded
relation in given changes in price, at any
to any
given time.
Economic Goods correct answers A product or service with a price and
opportunity
cost
.
Free Goods correct answers A good that is not scarce and has no
opportunity cost.
Basic Economic Problem correct answers Unlimited wants and finite
resources.
Normative Statements correct answers Subjective,
opinion.
Positive Statements correct answers
Fact.
Needs correct answers Basic necessities required
to live.
Wants correct answers Things that are not necessary to survive but
can improve
quality of
life.
Factor of Production Rewards correct answers Land
- Rent -
Labour
Wage
Capital -
Interest
Enterprise -
Profit
Strengths of the Market Economy correct answers Consumer
sovereignty.
Incentive for
innovation.
Weaknesses of the Market Economy correct answers
Underproduction
consumption of merit
and
goods.
Inequalit
y.
Opportunity Cost correct answers The next best alternative forgone
when making a
decisio
n.
Planned/Command Economy correct answers Decisions as to what to
produce, andhow who
to to produce for, are made by a central body, the
government
Mixed Economy correct answers An economic system combining private
and public
enterpris
e.
Economic Agents Objectives correct answers Consumers -
Utility.
Governments - Social
welfare.
Firms -
Profit.
, Derived Demand correct answers Business demand that ultimately
comes from
demand the
for consumer
goods.
Joint Demand correct answers Goods that are demanded
together.
Composite Demand correct answers Demand for a good with more
than one use.
Competitive Demand correct answers Demand for goods which are in
competition
each other with
(substitutes).
Consumer Surplus correct answers The amount the consumer is willing and
abledoes
but to paynot have
to.
Joint Supply correct answers Goods which are produced together, or
where the of one good involves the production of another product,
production
e.g. meat
leather (a and
by-
product).
Composite Supply correct answers Where a product produced by a firm
serves
than onemore
market.
Competitive Supply correct answers A situation where two goods compete
for the same
resources. Example: A farmer can produce wheat or corn, but producing
ore of one
means producing less of the
other.
Factors Affecting Supply correct answers
Productivity.
Indirect
taxation.
New
firms.
Technology
.Subsidies
.Weather
.Costs of
production.
Factors Affecting Demand correct answers
Population.
Advertisin
g.
Substitutes (price
of)
Income
.Fashion
.Interest
rates.
Complements (price
of)
Producer Surplus correct answers The difference between the current
market
the costprice and
of production for the
firm.
PED correct answers A measure of the responsiveness of quantity
demanded
relation in given changes in price, at any
to any
given time.
