OCR AS Level Economics (Micro Revision) Exam with Questions and Answers –
100% Solved
Abnormal, supernormal or economic profits - ✔✔✔-Profits above the normal profits
Average Cost (Unit Cost) - ✔✔✔-Total cost / Quantity Produced
Average Revenue - ✔✔✔-Total Revenue / Quantity Sold
Basic Economic Problem - ✔✔✔-Resources have to be allocated between competing uses
because wants are infinite whilst resources are scarce.
Consumer surplus - ✔✔✔-The difference between the total amount that consumers are willing
and able to pay for a good or service and the total amount that they actually do pay (i.e. the
market price).
Cross Elasticity of Demand - ✔✔✔-An economic concept which measures the responsiveness of
quantity demanded of one good to the change in price of another good.
Demand - ✔✔✔-The quantity of a product which consumers are able and willing to purchase at
each price in a given time period.
Demand: Decreases
Supply: Decreases
What happens to Equilibrium price and Quantity? - ✔✔✔-Equilibrium price is Indeterminate
and Quantity decreases.
Demand: Decreases
Supply: Increases
What happens to Equilibrium price and Quantity? - ✔✔✔-Equilibrium price Decrease and
Quantity is indeterminate.
, OCR AS Level Economics (Micro Revision) Exam with Questions and Answers –
100% Solved
Demand: Increases
Supply: Decreases
What happens to Equilibrium price and Quantity? - ✔✔✔-Equilibrium price Increases and
Quantity is indeterminate.
Demand: Increases
Supply: Increases
What happens to Equilibrium price and Quantity? - ✔✔✔-Equilibrium price is Indeterminate
and Quantity increases.
Demerit Goods - ✔✔✔-People underestimate the costs of good, e.g. smoking.
Determinants of PED - ✔✔✔-Amount of Substitutes, Luxury/necessity, proportion of income
spent, habit forming, actions of the firms.
Determinants of XED - ✔✔✔-subs/compliments, closeness of the degree of the substitutability,
closeness of the degree of the complementarity.
Determinants towards the elasticity of YED - ✔✔✔-Habit Forming, percentage of income spent,
luxury or necessity, availability of substitutes.
Determinants towards the type of goods that effect YED - ✔✔✔-luxury or necessity, lower price
alternatives, availability of substitutes.
Economic Goods - ✔✔✔-A good that is scarce and requires and opportunity cost.
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Abnormal, supernormal or economic profits - ✔✔✔-Profits above the normal profits
Average Cost (Unit Cost) - ✔✔✔-Total cost / Quantity Produced
Average Revenue - ✔✔✔-Total Revenue / Quantity Sold
Basic Economic Problem - ✔✔✔-Resources have to be allocated between competing uses
because wants are infinite whilst resources are scarce.
Consumer surplus - ✔✔✔-The difference between the total amount that consumers are willing
and able to pay for a good or service and the total amount that they actually do pay (i.e. the
market price).
Cross Elasticity of Demand - ✔✔✔-An economic concept which measures the responsiveness of
quantity demanded of one good to the change in price of another good.
Demand - ✔✔✔-The quantity of a product which consumers are able and willing to purchase at
each price in a given time period.
Demand: Decreases
Supply: Decreases
What happens to Equilibrium price and Quantity? - ✔✔✔-Equilibrium price is Indeterminate
and Quantity decreases.
Demand: Decreases
Supply: Increases
What happens to Equilibrium price and Quantity? - ✔✔✔-Equilibrium price Decrease and
Quantity is indeterminate.
, OCR AS Level Economics (Micro Revision) Exam with Questions and Answers –
100% Solved
Demand: Increases
Supply: Decreases
What happens to Equilibrium price and Quantity? - ✔✔✔-Equilibrium price Increases and
Quantity is indeterminate.
Demand: Increases
Supply: Increases
What happens to Equilibrium price and Quantity? - ✔✔✔-Equilibrium price is Indeterminate
and Quantity increases.
Demerit Goods - ✔✔✔-People underestimate the costs of good, e.g. smoking.
Determinants of PED - ✔✔✔-Amount of Substitutes, Luxury/necessity, proportion of income
spent, habit forming, actions of the firms.
Determinants of XED - ✔✔✔-subs/compliments, closeness of the degree of the substitutability,
closeness of the degree of the complementarity.
Determinants towards the elasticity of YED - ✔✔✔-Habit Forming, percentage of income spent,
luxury or necessity, availability of substitutes.
Determinants towards the type of goods that effect YED - ✔✔✔-luxury or necessity, lower price
alternatives, availability of substitutes.
Economic Goods - ✔✔✔-A good that is scarce and requires and opportunity cost.
