OCR A Level Economics Exam with 100% Correct Answers # Latest

OCR A Level Economics Exam with 100% Correct Answers # Latest normative statement *Ans* an opinion that cannot be confirmed by referencing facts positive statement *Ans* a statement that can be proved by referencing facts why are economic models used? *Ans* theories cannot be tested in a controlled environment the basic economic problem *Ans* scarcity - consumer wants are always greater than available resources opportunity cost *Ans* the next best alternative foregone factors of production *Ans* resources used by a firm in production list and define the factors of production *Ans* labour - the human element, both mental and physical capital - man made aids to production eg technology land - any natural resource used in production enterprise - combining above factors to make a profit, risk taking how can a PPC be used? *Ans* shows the efficiency of a firm and its maximum potential efficiency shows possible manufacturing combinations between two products and the opportunity cost of sacrificing each product demand *Ans* amount of a product demanded by consumers who are willing and able to buy it at a certain price over a certain period of time define determinants of demand give examples *Ans* factors that determine the demand for a product. consumer income, price of a substitute, quality, advertising, seasonal preference complementary good *Ans* a good commonly purchased alongside another good competitive demand *Ans* demand for alternative increases with price of original joint demand *Ans* demand for complementary good decreases as price of original increases derived demand *Ans* demand for a factor of production is influenced by demand for the product itself