PACKAGE DEAL FOR Edexcel A-Level Economics EXAM 2024!!

Economics - ANSWERSThe study of the allocation of scarce resources. Economic Goods - ANSWERSResources that are scarce. Short Run - ANSWERSA time period where at least one factor of production is fixed. Long Run - ANSWERSA time period where all factors of production are variable. Producti...

scarce resources - ANSWERSresources that are limited or finite opportunity cost - ANSWERSthe value of the next best alternative forgone economic problem - ANSWERSresources are scarce but wants are unlimited production possibility frontier - ANSWERSa diagram that shows all the combinations o...

Backwards vertical integration - ANSWERSa joining together into one firm of two or more firms where the purchaser merges with/takes over one or more of its suppliers Conglomerate integration - ANSWERSa joining together into one firm of two or more firms producing unrelated products Demerger - ...

Factors influencing demand for labour - ANSWERSDemand for final product - if rise in output > increase in productivity Relative productivity of labour to capital - substitution effect £3,000 subsidy for hiring unemployed 18-24 y.o. = half UK's youth minimum wage Factors influencing suppl...

Macroeconomics - ANSWERSThe study of the economy as a whole, including inflation, growth and unemployment. Aggregate demand - ANSWERSThe total amount of goods / services demanded in an economy at a given time at a given price level. Aggregate supply - ANSWERSTotal amount of goods and services ...

Production Possibility Frontier - ANSWERS Supply and demand diagram showing equilibrium - ANSWERS Supply and demand surplus - ANSWERS Increase in demand - ANSWERS Decrease in demand - ANSWERS Increase in supply - ANSWERS Decrease in supply - ANSWERS

Macroeconomics - ANSWERSThe study of the economy as a whole, including inflation, growth and unemployment. Aggregate demand - ANSWERSThe total of all demands or expenditures in the economy at any given price. Aggregate demand curve - ANSWERSShows the relationship between the price level and eq...

Globalisation - ANSWERSthe ever-increasing integration of world markets into a single world market Multinational company - ANSWERSa company with significant production operations in two or more countries Transfer pricing - ANSWERSan accounting technique through which multinational companies ca...

AD (def.) - ANSWERSTotal level of planned real expenditure on g/s produced within country in given time period AS (def.) - ANSWERSTotal supply of all g/s in economy AD (eq.) - ANSWERSAD = C + I + G + (X - M) Factors that affect AD: C - ANSWERS∝ disposable income ∝ employment ∝ 1/i...

Absolute advantage - ANSWERSWhen a country's output of a product per unit of input is greater than that of any other country. Absolute poverty - ANSWERSWhen a person does not have the income or wealth to fulfil their basic needs. Aggregate Demand (AD) - ANSWERSThe total demand/spending in an ...

Absolute advantage - ANSWERSWhen a country's output of a product per unit of input is greater than that of any other country. Absolute advantage - ANSWERSWhen a country's output of a product per unit of input is greater than that of any other country. Absolute poverty - ANSWERSWhen a person ...

What are the four assumptions of micro economics? - ANSWERSRational Consumers, perfectly competitive market, average consumer, ceteris paribus What is a positive statement? - ANSWERSa statement that can be tested and validated What is a normative statement? - ANSWERSan opinion, a value judgeme...

Market - ANSWERSWhere consumers and producers come into contact with each other to exchange goods and services Utility - ANSWERSThe amount of satisfaction obtained from consuming a good or service Rational decision making - ANSWERSWhere consumers allocate their expenditure on goods and service...

Principal-agent Problem - ANSWERSPrincipal (Shareholders) has different objectives to Agent (Manager) but the Agent is inclined to act in order to achieve their own objectives. Public sector organisation - ANSWERSWhen the government has control over the Business Private sector organisation - A...