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