ECONOMICS IGCSE EDEXCEL EXAM
QUESTIONS AND ANSWERS 1005
SOLVED
, Advalorem tax - ANSWERSTax levied as a percentage of the price of a good.
Aggregate demand - ANSWERSTotal demand in the economy including consumption,
investment, government expenditure and exports minus imports.
Anti-competitive practices or restrictive trade practices - ANSWERSAn attempt by firms
to prevent or restrict competition.
Assisted areas - ANSWERSAreas designated as having problems by the UK or EU and
are eligible for support.
Average costs - ANSWERSThe cost per unit of output; it is equal to total cost divided by
output.
Backward vertical integration - ANSWERSMerging with a firm that operates in the
previous stage of production.
Balance of payments - ANSWERSA record of all transactions relating to international
trade.
Balance of trade or visible balance - ANSWERSThe difference between visible exports
and visible imports.
Barriers to entry - ANSWERSObstacles that might discourage a firm from entering a
market.
Base rate - ANSWERSThe rate of interest set by the MPC which influences all other
rates in the economy.
Basic economic problem - ANSWERSAllocation of a nation's scarce resources between
competing uses that represent infinite wants.
Boom - ANSWERSThe peak of the economic cycle where GDP is growing at its fastest.
Budget - ANSWERSThe government's spending and revenue plans for the next year.
Budget deficit - ANSWERSThe amount by which government spending exceeds
government revenue.
Budget surplus - ANSWERSThe amount by which government revenue exceeds
government spending.
QUESTIONS AND ANSWERS 1005
SOLVED
, Advalorem tax - ANSWERSTax levied as a percentage of the price of a good.
Aggregate demand - ANSWERSTotal demand in the economy including consumption,
investment, government expenditure and exports minus imports.
Anti-competitive practices or restrictive trade practices - ANSWERSAn attempt by firms
to prevent or restrict competition.
Assisted areas - ANSWERSAreas designated as having problems by the UK or EU and
are eligible for support.
Average costs - ANSWERSThe cost per unit of output; it is equal to total cost divided by
output.
Backward vertical integration - ANSWERSMerging with a firm that operates in the
previous stage of production.
Balance of payments - ANSWERSA record of all transactions relating to international
trade.
Balance of trade or visible balance - ANSWERSThe difference between visible exports
and visible imports.
Barriers to entry - ANSWERSObstacles that might discourage a firm from entering a
market.
Base rate - ANSWERSThe rate of interest set by the MPC which influences all other
rates in the economy.
Basic economic problem - ANSWERSAllocation of a nation's scarce resources between
competing uses that represent infinite wants.
Boom - ANSWERSThe peak of the economic cycle where GDP is growing at its fastest.
Budget - ANSWERSThe government's spending and revenue plans for the next year.
Budget deficit - ANSWERSThe amount by which government spending exceeds
government revenue.
Budget surplus - ANSWERSThe amount by which government revenue exceeds
government spending.
