Class notes
Class notes / revision notes for paper 1 & 3 Economics Alevel
- Course
- Institution
Prepare for Economics Edexcel A-level exam for theme 1 and 3 - class and revision notes
[Show more]
Seller
Follow
nefelivasiliou
Content preview
ECONOMICS NOTES - THEME 1THE NATURE OF ECONOMICS
Economics - a social science
Economic Models = simplified versions of reality so economic behaviours may be
tested. Assumptions are used In order to simplify economic processes so that it
is easier to understand.
Ceteris Paribus = all other things considered unchanged. - ruled out the
possibility of other factors changing.
POSITIVE AND NORMATIVE STATEMENTS
Positive Statements = statements of fact which can be tested against real world
evidence. They can be proven true or false. They are OBJECTIVE
Normative Statement = matters of opinion which cannot be proved or disproved.
- VALUE JUDGMENT ( ought/should)
THE ECONOMIC PROBLEM
The economic problem = infinite wants and limited resources. — The problem of
scarcity of resources resulting to OPPORTUNITY COST
Opportunity Cost = the next best alternative forgone when making economic
decisions.
Resources = inputs used in the production of things that we desire. When
resources are productive the are called FACTORS OF PRODUCTION
Free Good = a good which is unlimited In supply. Therefore it is not scarce and
had no opportunity cost.eg: Sunlight/air.
Economic Goods = goods that involve opportunity cost. Even if they are offered
free of charge.
( do not confuse free goods and free of charge goods )
RESOURCES
1. Labour - physical and mental human effort used to create goods and
services.
-Human capital -education and training.—REWARD -wages/salary
Wages - rate per hour , paid weekly
Salaries - fixed amount paid monthly
Sectors in which workers are employed:
1) Primary — industries involved in extracting raw materials and food -
eg. Agriculture and fishing
2) Secondary — manufacturing industries / building and construction - eg.
Publishing, housing, jewellery.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller nefelivasiliou. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.02. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82191 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now