Allocative efficiency Study guides, Revision notes & Summaries

Absolute advantage When a country's output of a product per unit of input is greater than that of any other country. Absolute poverty When a person does not have the income or wealth to fulfil their basic needs. Aggregate Demand (AD) The total demand/spending in an economy at a given price level over a given period of time. Made up of consumption, investment, government spending and net external demand. Aggregate Supply (AS) The total amount of goods and services that c...

Factors influencing demand for labour - ANSWERSDemand for final product - if rise in output > increase in productivity Relative productivity of labour to capital - substitution effect £3,000 subsidy for hiring unemployed 18-24 y.o. = half UK's youth minimum wage Factors influencing supply of labour - ANSWERSCost of living Cost of gaining skills UK uni fees capped at £9,250 per year Number of workers UK raises state pension age from 67 to 68 Market failures in labour marke...

Absolute advantage - ANSWERSWhen a country's output of a product per unit of input is greater than that of any other country. Absolute advantage - ANSWERSWhen a country's output of a product per unit of input is greater than that of any other country. Absolute poverty - ANSWERSWhen a person does not have the income or wealth to fulfil their basic needs. Absolute poverty - ANSWERSWhen a person does not have the income or wealth to fulfil their basic needs. Aggregate Demand (AD) - AN...

Factors influencing demand for labour Demand for final product - if rise in output > increase in productivity Relative productivity of labour to capital - substitution effect £3,000 subsidy for hiring unemployed 18-24 y.o. = half UK's youth minimum wage Factors influencing supply of labour Cost of living Cost of gaining skills UK uni fees capped at £9,250 per year Number of workers UK raises state pension age from 67 to 68 Market failures in labour markets Geograph...

Absolute advantage - ANSWERSWhen a country's output of a product per unit of input is greater than that of any other country. Absolute poverty - ANSWERSWhen a person does not have the income or wealth to fulfil their basic needs. Aggregate Demand (AD) - ANSWERSThe total demand/spending in an economy at a given price level over a given period of time. Made up of consumption, investment, government spending and net external demand. Aggregate Supply (AS) - ANSWERSThe total amount of goods...

Absolute advantage - ANSWERSWhen a country's output of a product per unit of input is greater than that of any other country. Absolute poverty - ANSWERSWhen a person does not have the income or wealth to fulfil their basic needs. Aggregate Demand (AD) - ANSWERSThe total demand/spending in an economy at a given price level over a given period of time. Made up of consumption, investment, government spending and net external demand. Aggregate Supply (AS) - ANSWERSThe total amount of goods...

Economics AQA A LEVEL Positive Statement ️A statement that can be tested to see if it's correct or not Normative Statement ️A statement that has a value judgement and can't be refuted by looking at evidence Need ️Something necessary for human survival Want ️Something that is desirable Economic welfare ️The economic wellbeing of an individual or group of people (Human happiness) Capital good ️A good used in the production of other good and services Factors of pro...

1 of 50 Which of the following is closest to a perfectly competitive market? The pizza market The market for breakfast cereal The market for corn The market for automobiles Question 2 of 50 Which of the following statements is correct? The demand curve of the perfectly competitive industry is elastic, as are the demand curves that face the individual firms. The market demand curve of perfect competition is inelastic because the individual consumers ...

AP MACROECONOMIC REVIEW EXAM LATEST 2023 society's virtually unlimted wants paired our scarce and limited resources create this problem - the "economizing problem" usefulness or satisfaction - utility all natural, human, and manufactured items that go into the production of goods and services - economic resources they are the four factors of production (AKA economic resources) - land, labor, capital, entrepreneurship all gifts of nature - land manufactured/manmade tools used...

PCE 9B Exam Questions with Correct Answers oligopolies typically are not desirable because they - ANSWER do not achieve allocative efficiency because their price exceeds marginal cost by changing their advertising and _pricing_ strategies, firms competing in an oligopoly can affect profits and influence the profits of rivals - ANSWER pricing price leaders make price adjustments - ANSWER infrequently, due tot he uncertainty in rivals' response to th...