Edexcel A-Level Economics 2024 Theme 1
Exam Questions and Answers
Model - Answer>>A theoretical concept that looks at how
differant variables interact.
Ceteris Paribus - Answer>>All other factors remain the same.
Positive Statement - Answer>>Objective, factually based
comments that can be tested.
Normative Statement - Answer>>Subjective, questionable
comments based on valued judgements that are difficult to test.
Scarcity - Answer>>When there are unlimited human wants but
limited number of resources to meet these wants.
Economic Problem - Answer>>Making choices on how to
allocate scarce resources to best meet our needs and wants.
Renewable Resources - Answer>>Can be replenished.
Non-Renewable Resources - Answer>>Finite supply, will run
out.
Sustainable Resources - Answer>>Used for economic activities
in such a manner they wont run out.
Oppotunity Cost - Answer>>The benefit lost of the next best
alternative when making a choice.
Production Possibility Frontier - Answer>>A curve which
represents all possible combinations of goods an economy or a
firm can produce when all factors of production are fully employed
and used efficiently.
, Factors of Production - Answer>>1. Land
2. Labour
3. Capital
4. Enterprise
Productive Efficiency - Answer>>When the economy uses
minimum inputs to produce maximum output at lower cost.
Allocative Efficiency - Answer>>Social welfare is maximised in
the production of goods and services.
Supply-Side Policy - Answer>>Government attempt to
productivly increase supply.
Capital Goods - Answer>>Goods used to make consumer
goods and services.
Consumer Goods - Answer>>Goods and services that satisfy
our needs.
Production - Answer>>Measure of goods and services
produced.
Productivity - Answer>>Measure of efficiency of factors of
production measured by output per person employed or output
per person hour.
Specialisation - Answer>>Occurs when economic units focus
on producing specific goods or services.
Division of Labour - Answer>>Specialised use of workers within
an organisation.
Exam Questions and Answers
Model - Answer>>A theoretical concept that looks at how
differant variables interact.
Ceteris Paribus - Answer>>All other factors remain the same.
Positive Statement - Answer>>Objective, factually based
comments that can be tested.
Normative Statement - Answer>>Subjective, questionable
comments based on valued judgements that are difficult to test.
Scarcity - Answer>>When there are unlimited human wants but
limited number of resources to meet these wants.
Economic Problem - Answer>>Making choices on how to
allocate scarce resources to best meet our needs and wants.
Renewable Resources - Answer>>Can be replenished.
Non-Renewable Resources - Answer>>Finite supply, will run
out.
Sustainable Resources - Answer>>Used for economic activities
in such a manner they wont run out.
Oppotunity Cost - Answer>>The benefit lost of the next best
alternative when making a choice.
Production Possibility Frontier - Answer>>A curve which
represents all possible combinations of goods an economy or a
firm can produce when all factors of production are fully employed
and used efficiently.
, Factors of Production - Answer>>1. Land
2. Labour
3. Capital
4. Enterprise
Productive Efficiency - Answer>>When the economy uses
minimum inputs to produce maximum output at lower cost.
Allocative Efficiency - Answer>>Social welfare is maximised in
the production of goods and services.
Supply-Side Policy - Answer>>Government attempt to
productivly increase supply.
Capital Goods - Answer>>Goods used to make consumer
goods and services.
Consumer Goods - Answer>>Goods and services that satisfy
our needs.
Production - Answer>>Measure of goods and services
produced.
Productivity - Answer>>Measure of efficiency of factors of
production measured by output per person employed or output
per person hour.
Specialisation - Answer>>Occurs when economic units focus
on producing specific goods or services.
Division of Labour - Answer>>Specialised use of workers within
an organisation.
