A- Level Economics Q&A Mastery Package

Model A theoretical concept that looks at how differant variables interact. Ceteris Paribus All other factors remain the same. Positive Statement Objective, factually based comments that can be tested. Normative Statement Subjective, questionable comments based on valued judgements that are dif...

Economics The study of the allocation of scarce resources. Economic Goods Resources that are scarce. Short Run A time period where at least one factor of production is fixed. Long Run A time period where all factors of production are variable. Productivity The output per unit of input. The Econ...

Economic problem limited resources and unlimited wants marginal cost the increase in total cost that arises from an extra unit of production Ceteris parabus All this held consant Opportunity Cost The cost expressed in terms of the benefits of the next best thing forgone Positive statments Obje...

Normative statement an opinion that cannot be confirmed by referencing facts Positive statement a statement that can be proved by referencing facts Why are economic models used? theories cannot be tested in a controlled environment The basic economic problem scarcity - consumer wants are always...

Economics The study of the allocation of scarce resources. Economic Goods Resources that are scarce. Short Run A time period where at least one factor of production is fixed. Long Run A time period where all factors of production are variable. Productivity The output per unit of input. The Econ...

What are the 4 factors of production? Capital, enterprise, land and labour What is the basic economic problem? How best to make decisions about the allocation of scarce resources among competing uses so as to maximise human happiness and welfare Economic goods Goods that have an opportunity co...

Macroeconomics The study of the economy as a whole, including inflation, growth and unemployment. Aggregate demand The total of all demands or expenditures in the economy at any given price. Aggregate demand curve Shows the relationship between the price level and equilibrium national income...

GDP Gross domestic product measures the value of goods and services produced in an economy, it also measures national income/national expenditure Nominal GDP Measures the monetary value of GDP (this may include the effects of inflation) Real GDP Measures GDP adjusted for the effects of inflati...

Backwards vertical integration a 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 a joining together into one firm of two or more firms producing unrelated products Demerger when a firm splits i...