Economics AQA A LEVEL.pdf

Economics AQA A LEVEL

, Positive Statement - CORRECT ANSWERS-A statement that can be tested to see if it's
correct or not

Normative Statement - CORRECT ANSWERS-A statement that has a value judgement
and can't be refuted by looking at evidence

Need - CORRECT ANSWERS-Something necessary for human survival

Want - CORRECT ANSWERS-Something that is desirable

Economic welfare - CORRECT ANSWERS-The economic wellbeing of an individual or
group of people
(Human happiness)

Capital good - CORRECT ANSWERS-A good used in the production of other good and
services

Factors of production - CORRECT ANSWERS-Land, Labour, Capital, Enterprise

Fundamental Economic Problem is - CORRECT ANSWERS-scarcity and that it results
from limited resources and unlimited wants

Scarcity - CORRECT ANSWERS-Choices have to made how scarce resources are
going to be allocated

Opportunity cost - CORRECT ANSWERS-The cost of giving up the next best alternative

Productive efficiency - CORRECT ANSWERS-When the average total costs of
production is minimised

Allocative efficiency - CORRECT ANSWERS-Available resources are used to produce
the best combination of goods and services that best match people's preferences

Demand - CORRECT ANSWERS-The quantity of a good or service that consumers are
willing and able to buy at a given time

Normal good - CORRECT ANSWERS-A good for which demand increases when
income increases

IED > 1

Inferior good - CORRECT ANSWERS-A good for which demand increases when
income falls

IED < 1