OCR GCSE Economics Paper 1 Exam Questions
And Answers Verified 100% Correct
specialisation - ANSWER -The process by which individuals, firms,
regions and whole economies concentrate on producing those
products that they are best at producing
benefits and costs of specialisation on producers - ANSWER benefits:
more efficient, larger output, higher productivity, bigger market, EoS
costs: movement of workers (they get bored), dependancy on all parts
of production working, possible failure of exchange can slow down
process
benefits and costs of specialisation on workers - ANSWER -benefits:
increased skill leads to higher pay, can do what they are best at costs:
may get bored, not able to easily change jobs
benefits and costs of specialisation for regions - ANSWER -benefits:
jobs for residents, use of local resources, infrastructure development
costs: resource exhaustion, risk of fall in demand could lead to the
economy collapsing, loss of advantage (causes job loss)
benefits and costs of specialisation for countries - ANSWER -benefits:
economies of scale, more jobs, more international trade, greater tax
revenue costs: over exploitation of resources, dependancy on a
particular product, unemployment (industries failing fire people)
demand - ANSWER -the willingness and ability to buy goods or
services at a given time at a given price
utility - ANSWER -the level of satisfaction we get from a good or
service
,law of demand - ANSWER -as price increases, quantity demanded
decreases
(inverse relationship)
substitutes - ANSWER -goods and services that can be used in place
of one another
e.g coke and pepsi
compliments - ANSWER -goods or services that are usually bought
together
e.g. salt and pepper
expansion and contraction of demand - ANSWER -expansion - more
demand contraction - less demand
reasons for shifts in demand - ANSWER -Shift in demand (changes in)
Population
Related products
Income
Tastes and fashion
Economic expectations
, PED - ANSWER -the responsiveness of the quantity demanded to a
change in price
Elastic demand - ANSWER -when the percentage change of quantity
demanded is greater than the percentage change in price
inelastic demand - ANSWER -when the percentage change in quantity
demanded is less than the percentage change in price
examples of goods with elastic demand - ANSWER -takeaway pizza,
chocolate bar, luxury items
examples of good with inelastic demand - ANSWER -cigarettes, petrol,
gas, water
PED equation - ANSWER -% change in quantity demanded /
% change in price
What factors determine PED? - ANSWER -Significance / brand loyalty
Percentage of income
Luxury
Addictive or habit forming
Time taken to find an alternative
Substitutes
inelastic and elastic PED values - ANSWER -inelastic = above -1 e.g.
-0.5
And Answers Verified 100% Correct
specialisation - ANSWER -The process by which individuals, firms,
regions and whole economies concentrate on producing those
products that they are best at producing
benefits and costs of specialisation on producers - ANSWER benefits:
more efficient, larger output, higher productivity, bigger market, EoS
costs: movement of workers (they get bored), dependancy on all parts
of production working, possible failure of exchange can slow down
process
benefits and costs of specialisation on workers - ANSWER -benefits:
increased skill leads to higher pay, can do what they are best at costs:
may get bored, not able to easily change jobs
benefits and costs of specialisation for regions - ANSWER -benefits:
jobs for residents, use of local resources, infrastructure development
costs: resource exhaustion, risk of fall in demand could lead to the
economy collapsing, loss of advantage (causes job loss)
benefits and costs of specialisation for countries - ANSWER -benefits:
economies of scale, more jobs, more international trade, greater tax
revenue costs: over exploitation of resources, dependancy on a
particular product, unemployment (industries failing fire people)
demand - ANSWER -the willingness and ability to buy goods or
services at a given time at a given price
utility - ANSWER -the level of satisfaction we get from a good or
service
,law of demand - ANSWER -as price increases, quantity demanded
decreases
(inverse relationship)
substitutes - ANSWER -goods and services that can be used in place
of one another
e.g coke and pepsi
compliments - ANSWER -goods or services that are usually bought
together
e.g. salt and pepper
expansion and contraction of demand - ANSWER -expansion - more
demand contraction - less demand
reasons for shifts in demand - ANSWER -Shift in demand (changes in)
Population
Related products
Income
Tastes and fashion
Economic expectations
, PED - ANSWER -the responsiveness of the quantity demanded to a
change in price
Elastic demand - ANSWER -when the percentage change of quantity
demanded is greater than the percentage change in price
inelastic demand - ANSWER -when the percentage change in quantity
demanded is less than the percentage change in price
examples of goods with elastic demand - ANSWER -takeaway pizza,
chocolate bar, luxury items
examples of good with inelastic demand - ANSWER -cigarettes, petrol,
gas, water
PED equation - ANSWER -% change in quantity demanded /
% change in price
What factors determine PED? - ANSWER -Significance / brand loyalty
Percentage of income
Luxury
Addictive or habit forming
Time taken to find an alternative
Substitutes
inelastic and elastic PED values - ANSWER -inelastic = above -1 e.g.
-0.5
