OCR A Level Economics || with 100% Error-free Solutions.

normative statement correct answers an opinion that cannot be confirmed by referencing facts positive statement correct answers a statement that can be proved by referencing facts why are economic models used? correct answers theories cannot be tested in a controlled environment the basic economic problem correct answers scarcity - consumer wants are always greater than available resources opportunity cost correct answers the next best alternative foregone factors of production correct answers resources used by a firm in production list and define the factors of production correct answers 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? correct answers 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 correct answers 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 correct answers factors that determine the demand for a product. consumer income, price of a substitute, quality, advertising, seasonal preference complementary good correct answers a good commonly purchased alongside another good competitive demand correct answers demand for alternative increases with price of original joint demand correct answers demand for complementary good decreases as price of original increases derived demand correct answers demand for a factor of production is influenced by demand for the product itself composite demand correct answers demand for a product comes from multiple groups of consumers