OCR GCSE - Economics written test example questions (2 marks) - Pape
- Introduction to Economics
Study online at https://quizlet.com/_g5dlzi
1. Name the three economic groups (2 marks): The main economic groups are consumers,
producers and the government.
2. Explain what interdependence means giving an example. (2 marks): Interdepen-
dence is the way the actions of the 3 main economic groups impact on each other (1)Any suitable example e.g. How
consumer preferences in�uence producers
3. List the four factors of production (2 marks): Land ,labour ,capital, enterprise
4. Explain the basic economic problem. (2 marks): The basic economic problem is that we have
scarce resources(1) but unlimited wants(1) or The Basic Economic Problem is how we can best allocate limited resources
to satisfy the unlimited wants of people.
5. Explain what opportunity costs mean (2 marks): Opportunity cost is the next best choice
foregone(1) when you make an economic choice(1)
6. Explain what is meant by a market. (2 marks): A market is a place where buyers and sellers
meet(1) to buy and sell goods and services.(1)
7. Explain how the product and factor markets are interdependent using an
example. (2 marks): The demand for products leads to demand for the resources that make them(1) e.g.
As the demand for phones and computers goes up so too does the demand for rare earth minerals that are used in
their production.(1) Allow any suitable example including demand for employees of certain types increasing as demand
increases.
8. Explain what the primary sector is and give an example. (2 marks): Involvement
in the direct use of natural resources so they can be used in raw materials during the production process(1) e.g.
Farmers(1)
9. Explain what the secondary sector is and give an example. (2 marks): All economic
activity involved in manufacturing (direct or indirect use) or construction(1) .E.g. Factories (1)
10. Explain what the tertiary sector is and give an example. (2 marks): The tertiary
sector is any business involved with providing a service(1) e.g. retailers(1)
11. Explain what is meant by demand. (2 marks): The willingness and ability(1) to buy a good
or service at each price in a certain time period.(1)
12. Explain what the law of demand is. (2 marks): The demand for a good or service is inversely
related to the price(1) i.e. as the price rises demand falls and vice versa.(1)
13. Explain how the di�erence between individual demand and market demand.
(2 marks): Individual demand is the amount of a good or service that an individual would buy at each price in a
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, OCR GCSE - Economics written test example questions (2 marks) - Pape
- Introduction to Economics
Study online at https://quizlet.com/_g5dlzi
given time period(1)Market demand is the total demand from all potential customers at each price in a given time
period.(1)
14. Explain what price elasticity of demand is. (2 marks): The responsiveness of demand(1)
to a change in price.(1)
15. Explain one factor that can cause more resources to be allocated to a partic-
ular market (2 marks): A high demand and high price for a good will give an incentive to rms to allocate
more resources to producing that good.
16. Explain what is meant by demand is price inelastic. ( 2 marks): Percentage change
in quantity demanded is less than the percentage change in price
17. Explain one possible cost for a small business of specialisation by its workers
( 2 marks): Boredom and demotivation leads to the decrease in productivity
18. Explain what is meant by productivity ( 2 marks): How much outputs can be produced with
a given set of inputs.
19. State what is meant by 'the equilibrium price and quantity'. ( 2 marks): Where
the quantity demanded exactly matches (is equal to) the quantity supplied
20. State what is meant by 'economies of scale' ( 2 marks): The unit cost advantages a rm
can gain (1) by increasing the scale of production (1)
21. Explain one bene t to a rm of choosing to be environmentally sustainable.
( 2 marks): Increased sales to environmentally conscious consumers
22. Explain the di�erence of product market and factor market (2 marks): A product
market where nished goods or services are o ered to consumers, businesses and the public sector.The factor market
where the services of the factors of production (CELL) are bought and sold.
23. Draw an elastic demand curve. (2 marks): draw
24. Explain the term shift of demand ( 2 marks): A shift of demand is where the entire demand
curve shifts to the left or the right. A left shift of demand means there is less demand at every price and a right shift of
demand means there is more demand at every price.
2/7
- Introduction to Economics
Study online at https://quizlet.com/_g5dlzi
1. Name the three economic groups (2 marks): The main economic groups are consumers,
producers and the government.
2. Explain what interdependence means giving an example. (2 marks): Interdepen-
dence is the way the actions of the 3 main economic groups impact on each other (1)Any suitable example e.g. How
consumer preferences in�uence producers
3. List the four factors of production (2 marks): Land ,labour ,capital, enterprise
4. Explain the basic economic problem. (2 marks): The basic economic problem is that we have
scarce resources(1) but unlimited wants(1) or The Basic Economic Problem is how we can best allocate limited resources
to satisfy the unlimited wants of people.
5. Explain what opportunity costs mean (2 marks): Opportunity cost is the next best choice
foregone(1) when you make an economic choice(1)
6. Explain what is meant by a market. (2 marks): A market is a place where buyers and sellers
meet(1) to buy and sell goods and services.(1)
7. Explain how the product and factor markets are interdependent using an
example. (2 marks): The demand for products leads to demand for the resources that make them(1) e.g.
As the demand for phones and computers goes up so too does the demand for rare earth minerals that are used in
their production.(1) Allow any suitable example including demand for employees of certain types increasing as demand
increases.
8. Explain what the primary sector is and give an example. (2 marks): Involvement
in the direct use of natural resources so they can be used in raw materials during the production process(1) e.g.
Farmers(1)
9. Explain what the secondary sector is and give an example. (2 marks): All economic
activity involved in manufacturing (direct or indirect use) or construction(1) .E.g. Factories (1)
10. Explain what the tertiary sector is and give an example. (2 marks): The tertiary
sector is any business involved with providing a service(1) e.g. retailers(1)
11. Explain what is meant by demand. (2 marks): The willingness and ability(1) to buy a good
or service at each price in a certain time period.(1)
12. Explain what the law of demand is. (2 marks): The demand for a good or service is inversely
related to the price(1) i.e. as the price rises demand falls and vice versa.(1)
13. Explain how the di�erence between individual demand and market demand.
(2 marks): Individual demand is the amount of a good or service that an individual would buy at each price in a
1/7
, OCR GCSE - Economics written test example questions (2 marks) - Pape
- Introduction to Economics
Study online at https://quizlet.com/_g5dlzi
given time period(1)Market demand is the total demand from all potential customers at each price in a given time
period.(1)
14. Explain what price elasticity of demand is. (2 marks): The responsiveness of demand(1)
to a change in price.(1)
15. Explain one factor that can cause more resources to be allocated to a partic-
ular market (2 marks): A high demand and high price for a good will give an incentive to rms to allocate
more resources to producing that good.
16. Explain what is meant by demand is price inelastic. ( 2 marks): Percentage change
in quantity demanded is less than the percentage change in price
17. Explain one possible cost for a small business of specialisation by its workers
( 2 marks): Boredom and demotivation leads to the decrease in productivity
18. Explain what is meant by productivity ( 2 marks): How much outputs can be produced with
a given set of inputs.
19. State what is meant by 'the equilibrium price and quantity'. ( 2 marks): Where
the quantity demanded exactly matches (is equal to) the quantity supplied
20. State what is meant by 'economies of scale' ( 2 marks): The unit cost advantages a rm
can gain (1) by increasing the scale of production (1)
21. Explain one bene t to a rm of choosing to be environmentally sustainable.
( 2 marks): Increased sales to environmentally conscious consumers
22. Explain the di�erence of product market and factor market (2 marks): A product
market where nished goods or services are o ered to consumers, businesses and the public sector.The factor market
where the services of the factors of production (CELL) are bought and sold.
23. Draw an elastic demand curve. (2 marks): draw
24. Explain the term shift of demand ( 2 marks): A shift of demand is where the entire demand
curve shifts to the left or the right. A left shift of demand means there is less demand at every price and a right shift of
demand means there is more demand at every price.
2/7
