Edexcel Economics A Level Theme 1 Exam 2024 Questions & Answers 100% Correct!

scarce resources - ANSWERSresources that are limited or finite opportunity cost - ANSWERSthe value of the next best alternative forgone economic problem - ANSWERSresources are scarce but wants are unlimited production possibility frontier - ANSWERSa diagram that shows all the combinations of two goods that can be produced when all factors of production are being used normative statement - ANSWERSan economic statement based on a value judgement and therefore cannot be tested positive statement - ANSWERSan economic statement that can be tested in order to determine whether or not it is true land - ANSWERSnatural resources that are used for production. payment is rent labour - ANSWERShuman resources that are used for production. value of labour is human capital, payment is wages/salaries capital - ANSWERSmanufactured goods that are used for production. payment is interest enterprise - ANSWERSrisk taking in the production process. payment is profit command economy - ANSWERSan economy in which what, how and for whom to produce are determined by a state planning process free market economy - ANSWERSan economy in which what, how and for whom to produce are determined through the forces of supply and demand without state intervention mixed economy - ANSWERSan economy in which what, how and for whom to produce are determined partly through planning and partly through market forces econ