IGCSE Economics (Edexcel) Definitions || All Correct.

Economics correct answers The study of how society manages its scare resources to satisfy unlimited wants Economy correct answers A system that attempt to solve the basic economic problem. Micro-economics correct answers The study of how households (buyers) and firms (sellers) make decisions regarding the allocation of limited resources and how they interact in specific markets as individuals Macro-economics correct answers The branch of economics that examines the behaviour of the whole economy Scarcity correct answers Society has limited resources and therefore cannot produce enough goods and services to satisfy everyone's wants. Opportunity Cost correct answers The next best alternative forgone when an economic decision is made Wants correct answers Anything you would like irrespective of whether you have the resources to purchase it. Needs correct answers Basic requirements for human survival Choice correct answers The selection of appropriate alternatives. Ceteris Paribus correct answers 'other things being equal' It is used as a reminder that all variables other than the one(s) being studied are assumed to be constant Production Possibility Curve correct answers This shows maximum quantities of different combinations of two products an economy can produce given current resources and the state of technology. Exporters correct answers Firms that sell overseas. Market correct answers A place or situation where buyers and sellers communicate with exchange in mind. Market Failure correct answers Market failure occurs when freely functioning markets fail to deliver an efficient allocation of resources. The result is a loss of economic and social welfare. Price correct answers The amount of money that goods are exchanged for a transaction. Price Mechanism/Market System correct answers The automatic determination of prices and the allocation of resources by the operation of markets in the economy.