Economics AQA A LEVEL

Positive Statement - correct answer A statement that can be tested to see if it's correct or not Normative Statement - correct answer A statement that has a value judgement and can't be refuted by looking at evidence Need - correct answer Something necessary for human survival Want - correct answer Something that is desirable Economic welfare - correct answer The economic wellbeing of an individual or group of people (Human happiness) Capital good - correct answer A good used in the production of other good and services Factors of production - correct answer Land, Labour, Capital, Enterprise Fundamental Economic Problem is - correct answer scarcity and that it results from limited resources and unlimited wants Scarcity - correct answer Choices have to made how scarce resources are going to be allocated Opportunity cost - correct answer The cost of giving up the next best alternative Productive efficiency - correct answer When the average total costs of production is minimised Allocative efficiency - correct answer Available resources are used to produce the best combination of goods and services that best match people's preferences Demand - correct answer The quantity of a good or service that consumers are willing and able to buy at a given time Normal good - correct answer A good for which demand increases when income increases IED 1 Inferior good - correct answer A