Edexcel Economics A Theme 1 Summary Notes

Theme I
Economics


Summary
Notes .

,A Nature of
Economics

,101 Nature Economics
- of
statement :
Resitive statements
Obyvalue without
·




ective
that can
destegagements
also

be

statements
Negative Suby Opinion
-eative statements
:
& .
based



#Renewable
Resources : Resources
can
who's
be
economic
value
naturally
replenished at the rate

of consumption .




Non-renewable
Resources :Resources whos economic


valuecannot
at
be natud
the a
rate
of consumption.
the next best alternative
-portunity
Cost : Value
of
forgone .

, PDF :
-
shows the
opportuity cost between the production
two
of different goods .




Capt :
goods
Goods that are used to produce
other
goods
& that be
bought by
goods
ensumer : Goods are
to

consumers
Capital




L
A: Maximum allocative
Goods * -

efficiency in


favour of producing more
capital
good
B : Maximum
efficiency
allocative
equally
between the production
-




g
Capital & Consumer oods
g
.




Consumer C: Maximum allocative
Goods - efficiency
favour ofproducing
in m o re

consumer
goods
DiIneficent
=>
allocato
a
Productive potential not
E:
=> yet
possible or sustainable as the
resources are not
necessary
of available to produce at
Y that level