CIE A level Economics Practice Test |100% Correct Answers| LATEST

CIE A level Economics Practice Test |100% Correct Answers| LATEST Economic problem *Ans* limited resources and unlimited wants marginal cost *Ans* the increase in total cost that arises from an extra unit of production Ceteris parabus *Ans* All this held consant Opportunity Cost *Ans* The cost expressed in terms of the benefits of the next best thing forgone Positive statments *Ans* Objective statements that can be backed with evidence Normative statements *Ans* Subjective statements that cannot be backed with evidence Time periods *Ans* Short run, Long run, Very-long run Short run *Ans* One factor of production is fixed Long run *Ans* All factors of production are variable Very-long run *Ans* All factors of production are variable because of technological progress Capital goods *Ans* Goods used to make consumer goods and services Consumer goods *Ans* goods and services that satisfy consumers wants and needs Consumer durables *Ans* Goods that satisfy wants over a longer period of time Like TV, Irons, Washing Machine Consumer non-durables *Ans* Goods that satisfy wants quickly Chocolate bars, Ice cream Consumer services *Ans* Services Movie tickets, Concert tickets Production *Ans* The process of creating goods and services in an economy Productivity *Ans* The measure of efficiency of production Output *Ans* Factor inputs + Factor Productivit