Edexcel Economics A Level Theme 1 Exam 2024 Questions & Answers(RATED A+)

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 economy - ANSWERSa system through which factors of production are converted into goods and/or services market - ANSWERSany place where the sellers of a particular good or service can meet with the buyers of that good or service where there is a potential for a transaction to take place non-renewable resources - ANSWERSresources which once used, will never be replaced renewable resources - ANSWERSresources which can be replaced as they are used sustainable resources - ANSWERSrenewable resources that are being replaced at a fast enough rate that their overall numbers are not diminishing thanks to economic activity non-sustainable resources - ANSWERSresources that diminish over time due to economic activity economic agents - ANSWERSdecision makers in an economy consumers (economic agent) - ANSWERStheir aim is to maximise utility gained from goods and services workers (economic agent) -