A LEVEL ECONOMICS ACTUAL QUESTIONS
AND CORRECT ANSWERS COMPLETE
ECONOMICS STUDY GUIDE
●● Economic Goods
Answer: Resources that are scarce.
●● Short Run
Answer: A time period where at least one factor of production is fixed.
●● Long Run
Answer: A time period where all factors of production are variable.
●● Productivity
Answer: The output per unit of input.
●● The Economic Problem
Answer: Resources are scarce but wants are infinite.
●● Scarcity
Answer: The world's resources are limited, there are only limited
amounts of land, water, oil, food, etc..
,Therefore, resources are scarce.
●● Free Goods
Answer: Goods that are unlimited in supply and therefore have no
opportunity cost.
●● Economic Agents
Answer: Consumer, Business and Governments.
Agents involved in Economic transactions.
●● Production Possibility Frontier
Answer: The maximum potential output of a combination of goods an
economy can achieve when all its resources are fully and efficiently
employed, given the level of technology.
●● Opportunity Cost
Answer: The next best alternative foregone.
●● Economic Growth
Answer: Increase an economy's productive potential.
●● Capital Goods
, Answer: Goods intended for use in production, rather than by
consumers.
●● Consumer Goods
Answer: Goods designed for use by final consumers.
●● Renewable Resources
Answer: A resource whose stock level can be replenished naturally over
a period of time.
●● Non-renewable Resources
Answer: A resource whose stock level decreases over time as it is
consumed.
●● Ceteris Paribus
Answer: 'All other things (factors) remaining the same'
The assumption that all other variables within a model remain constant
whilst the change is being considered.
●● Positive Statement
Answer: A statement based on facts which can be tested as true or false
and are value-free.
AND CORRECT ANSWERS COMPLETE
ECONOMICS STUDY GUIDE
●● Economic Goods
Answer: Resources that are scarce.
●● Short Run
Answer: A time period where at least one factor of production is fixed.
●● Long Run
Answer: A time period where all factors of production are variable.
●● Productivity
Answer: The output per unit of input.
●● The Economic Problem
Answer: Resources are scarce but wants are infinite.
●● Scarcity
Answer: The world's resources are limited, there are only limited
amounts of land, water, oil, food, etc..
,Therefore, resources are scarce.
●● Free Goods
Answer: Goods that are unlimited in supply and therefore have no
opportunity cost.
●● Economic Agents
Answer: Consumer, Business and Governments.
Agents involved in Economic transactions.
●● Production Possibility Frontier
Answer: The maximum potential output of a combination of goods an
economy can achieve when all its resources are fully and efficiently
employed, given the level of technology.
●● Opportunity Cost
Answer: The next best alternative foregone.
●● Economic Growth
Answer: Increase an economy's productive potential.
●● Capital Goods
, Answer: Goods intended for use in production, rather than by
consumers.
●● Consumer Goods
Answer: Goods designed for use by final consumers.
●● Renewable Resources
Answer: A resource whose stock level can be replenished naturally over
a period of time.
●● Non-renewable Resources
Answer: A resource whose stock level decreases over time as it is
consumed.
●● Ceteris Paribus
Answer: 'All other things (factors) remaining the same'
The assumption that all other variables within a model remain constant
whilst the change is being considered.
●● Positive Statement
Answer: A statement based on facts which can be tested as true or false
and are value-free.
