Official summer 2024 Pearson Edexcel GCE AS Level In
Economics A (8EC0) Paper 01 Introduction to Markets
and Market Failure Merged Question Paper
Chapter 1 - ANSWER Chapter 1
Ceteris Paribus - ANSWER all things being equal, the assumptuion that while the
effects of a change in one variable are being investigated, all other variables are kept
constant.
Disposable Income - ANSWER the amount of money that you have left to spend
after you have paid your taxes, bills, etc.
Emperical - ANSWER based on scientific testing or practical expereience not on
ideas.
Good - ANSWER a thing that is produced in order to be sold
Hypothesis - ANSWER an idea that is suggested as an explaination for something
but that has not yet been proved to be true.
Inequality - ANSWER an unfair situation, in which some groups in society have
more money, opportunities, or power than others.
Law - ANSWER a theory or model that has been verified by emperical evidence.
Normative economics - ANSWER the study and presentation of policy prescriptions
involving value judgments about the way in which scarce resources are allocated.
Normative statements - ANSWER statements that cannot be supported or refuted
because it is a value judgment.
Positive economics - ANSWER the scientific or objective study of the allocation of
resources.
Positive statements - ANSWER statements that can be supported or refuted by
evidence
Scientific method - ANSWER a method that subjects theories or hypotheses to
being disproved by emperical evidence.
Social Science - ANSWER the study of societies and human behaviot using a
variety of methods including the scientific method.
Theory or model - ANSWER a hypothesis that is capable of being refuted by
empirical evidence
, Chapter 2 - ANSWER Chapter 2
Basic economic problem - ANSWER resources have to be allocated between
competing uses because wants are infinite but resources are scarce.
Capital - ANSWER as a factor of production the stock of manufactured resources
used in the production of goods and resources.
Economic goods - ANSWER goods that are scarce because their use has an
opportunity cost.
Enterprise or entrepreneurship - ANSWER as a factor of production the seeking out
of profitable opportunities for production and taking risks in attempting to exploit
these.
Factors of production - ANSWER the inputs to the production process: land, labor,
capital, and enterprise or entrepreneurship.
Fixed capital - ANSWER economic resources, such as factories and hospitals that
are used to transform working capital into goods and services.
Free goods - ANSWER goods that are unlimited in supply and therefore have no
opportunity cost.
Human capital - ANSWER the value of the productive potential of an individual or a
group of individuals.
Labour - ANSWER workforce
Land - ANSWER natural resources
Needs - ANSWER the minimum that is necessary for a person to survive as a
human being.
Non-renewable resources - ANSWER resources which once exploited cannot be
replaced such as coal, oil, nuclear, or natural gas.
Renewable resources - ANSWER esources that can be exploited over and over
again because they have the potential to renew themselves such as forests, fish
stocks, solar, wind, or hydro.
Opportunity cost - ANSWER the benefits of the best next alternative that are given
up.
Scarce resources - resources that are limited in supply so that choices have to be
made about their use.
Wants - ANSWER desires for the consumption of goods and services.
Economics A (8EC0) Paper 01 Introduction to Markets
and Market Failure Merged Question Paper
Chapter 1 - ANSWER Chapter 1
Ceteris Paribus - ANSWER all things being equal, the assumptuion that while the
effects of a change in one variable are being investigated, all other variables are kept
constant.
Disposable Income - ANSWER the amount of money that you have left to spend
after you have paid your taxes, bills, etc.
Emperical - ANSWER based on scientific testing or practical expereience not on
ideas.
Good - ANSWER a thing that is produced in order to be sold
Hypothesis - ANSWER an idea that is suggested as an explaination for something
but that has not yet been proved to be true.
Inequality - ANSWER an unfair situation, in which some groups in society have
more money, opportunities, or power than others.
Law - ANSWER a theory or model that has been verified by emperical evidence.
Normative economics - ANSWER the study and presentation of policy prescriptions
involving value judgments about the way in which scarce resources are allocated.
Normative statements - ANSWER statements that cannot be supported or refuted
because it is a value judgment.
Positive economics - ANSWER the scientific or objective study of the allocation of
resources.
Positive statements - ANSWER statements that can be supported or refuted by
evidence
Scientific method - ANSWER a method that subjects theories or hypotheses to
being disproved by emperical evidence.
Social Science - ANSWER the study of societies and human behaviot using a
variety of methods including the scientific method.
Theory or model - ANSWER a hypothesis that is capable of being refuted by
empirical evidence
, Chapter 2 - ANSWER Chapter 2
Basic economic problem - ANSWER resources have to be allocated between
competing uses because wants are infinite but resources are scarce.
Capital - ANSWER as a factor of production the stock of manufactured resources
used in the production of goods and resources.
Economic goods - ANSWER goods that are scarce because their use has an
opportunity cost.
Enterprise or entrepreneurship - ANSWER as a factor of production the seeking out
of profitable opportunities for production and taking risks in attempting to exploit
these.
Factors of production - ANSWER the inputs to the production process: land, labor,
capital, and enterprise or entrepreneurship.
Fixed capital - ANSWER economic resources, such as factories and hospitals that
are used to transform working capital into goods and services.
Free goods - ANSWER goods that are unlimited in supply and therefore have no
opportunity cost.
Human capital - ANSWER the value of the productive potential of an individual or a
group of individuals.
Labour - ANSWER workforce
Land - ANSWER natural resources
Needs - ANSWER the minimum that is necessary for a person to survive as a
human being.
Non-renewable resources - ANSWER resources which once exploited cannot be
replaced such as coal, oil, nuclear, or natural gas.
Renewable resources - ANSWER esources that can be exploited over and over
again because they have the potential to renew themselves such as forests, fish
stocks, solar, wind, or hydro.
Opportunity cost - ANSWER the benefits of the best next alternative that are given
up.
Scarce resources - resources that are limited in supply so that choices have to be
made about their use.
Wants - ANSWER desires for the consumption of goods and services.
