Economics IGCSE EDEXCEL Questions And Answers.

Advalorem tax Correct Answer Tax levied as a percentage of the price of a good. Average costs Correct Answer The cost per unit of output; it is equal to total cost divided by output. Basic economic problem Correct Answer Allocation of a nation's scarce resources between competing uses that represent infinite wants. Capital intensive Correct Answer Where production relies more heavily on machinery relative to labour. Choice Correct Answer Deciding between alternative uses of scare resources. Collusion Correct Answer Agreements between firms to restrict competition. Competition Correct Answer The rivalry that exists between firms when trying to sell goods to the same group of customers. Complementary goods Correct Answer Goods purchased together because they are consumed together. Contractionary fiscal policy Correct Answer Fiscal measures designed to dampen demand in the economy. Cost-push inflation Correct Answer Inflation caused by rising business costs. Costs Correct Answer The expenses incurred when producing goods and services. Current account Correct Answer Part of the balance of payments where all exports and imports are recorded. Cyclical or demand deficient unemployment Correct Answer Unemployment caused by falling demand as result of a downturn in the economic cycle. De-industrialisation Correct Answer The decline in manufacturing. Deflation Correct Answer A period where the level of aggregate demand is falling. Demand Correct Answer The amount a good will be bought at given prices over a period of time.