IGCSE Economics || All Questions Answered Correctly.

Opportunity cost correct answers A cost of choosing one thing over the next best alternative. The economic problem correct answers The idea that resources are scare and wants are unlimited Economy correct answers Where people produce goods and services. Market correct answers Where a group of people willing to exchange goods and services meet. Perfect market correct answers Neither Consumer/producer solely influence the price charged for goods and services Imperfect market correct answers a powerful consumer or producer can influence prices The four factors of production correct answers Land, Capital, Labour, Enterprise Consumer Goods correct answers products bought by consumers to satisfy their wants The two types of consumer goods correct answers durable consumer good which can last a long time and a non-durable consumer good which does not last long. Capital goods correct answers Man made resources produced by labour which can help in the production of other goods and services. Public goods correct answers a good is offered by the government since no private firm would be willing to produce it Merit goods correct answers a good/service offered by the government since it feels that people need them regardless whether they can pay for them Private wealth correct answers goods and services owned by entrepreneurs and people in the private sector Social wealth correct answers goods and services owned by the government in the public sector National wealth correct answers both private and social wealth. Earned income correct answers money earned while working (wage/salary). Unearned income correct answers money generated from assets and wealth (no working required) Resource allocation correct answers how much factors of production are used in the production of a particular good/service.