IGCSE Economics exam latest update
A+ graded
Definition of opportunity cost - answer the cost of the next best opportunity forgone
The effects of opportunity cost on workers - answer specialization
The production possibility curve represents - answer the maximum combination of
products that can be produced in an economy
How can a country be on its PPC? - answer All resources are used; there is efficiency
(in the use of resources)
A movement along the PPC results in - answer opportunity cost
in order for the PPC to shift outwards, there must be - answer economic growth
The two ways for economic growth are - answer Increase in the quality (of the factors
of production); Increase in the quantity (of the factors of production)
The market system refers to - answer the method of allocating scarce resources
through (the market forces of) demand and supply
Markets consist of - answer buyers and sellers
The market system is also known as - answer the price mechanism
the market system establishes - answer market equilibrium
market equilibrium is when - answer demand equals supply
market disequilibrium occurs when - answer the market price is either above or below
the equilibrium price
if the price of a product is above the equilibrium price there will be a - answer surplus
, if the price of a product is below the equilibrium price there will be a - answer shortage
The price mechanism refers to - answer the system of relying on (the market forces of)
supply and demand to allocate resources
In the market system, (sector) decides on the fundamental questions regarding
production - answer the private sector
Features of the market system include - answer There is no government interference in
economic activities; Products are allocated on the basis of price; The allocation of
resources is based on financial incentives; competition creates choice and opportunities
for firms and private individuals
Definition of Micro-Economics - answer The study of particular markets and sections of
the economy (rather than the economy as a whole)
Microeconomics is concerned with - answer the (economic) factors that affect choices
and the effects of changes (in these factors) on decision makers
Microeconomics tends to use (something) rather than (something) to explain
(something) - answer theory; empirical evidence; changes (in individual markets and
industries)
Definition of Macro-Economics - answer The study of economic behavior and decision
making in the whole economy (rather than individual segments of the economy)
Macroeconomics looks at - answer aggregate variables
Macroeconomics attempts to explain - answer what is likely to happen to the economy
as a whole if certain economic factors change
Macroeconomics places greater emphasis on using (something) - answer empirical
evidence
Microeconomics is concerned with decision making by - answer individuals,
households, and firms
Macroeconomics is concerned with decision making - answer for the economy as a
whole
Demand refers to - answer the willingness and ability of customers to pay a given price
to buy a product
Demand is also referred to as - answer effective demand
A+ graded
Definition of opportunity cost - answer the cost of the next best opportunity forgone
The effects of opportunity cost on workers - answer specialization
The production possibility curve represents - answer the maximum combination of
products that can be produced in an economy
How can a country be on its PPC? - answer All resources are used; there is efficiency
(in the use of resources)
A movement along the PPC results in - answer opportunity cost
in order for the PPC to shift outwards, there must be - answer economic growth
The two ways for economic growth are - answer Increase in the quality (of the factors
of production); Increase in the quantity (of the factors of production)
The market system refers to - answer the method of allocating scarce resources
through (the market forces of) demand and supply
Markets consist of - answer buyers and sellers
The market system is also known as - answer the price mechanism
the market system establishes - answer market equilibrium
market equilibrium is when - answer demand equals supply
market disequilibrium occurs when - answer the market price is either above or below
the equilibrium price
if the price of a product is above the equilibrium price there will be a - answer surplus
, if the price of a product is below the equilibrium price there will be a - answer shortage
The price mechanism refers to - answer the system of relying on (the market forces of)
supply and demand to allocate resources
In the market system, (sector) decides on the fundamental questions regarding
production - answer the private sector
Features of the market system include - answer There is no government interference in
economic activities; Products are allocated on the basis of price; The allocation of
resources is based on financial incentives; competition creates choice and opportunities
for firms and private individuals
Definition of Micro-Economics - answer The study of particular markets and sections of
the economy (rather than the economy as a whole)
Microeconomics is concerned with - answer the (economic) factors that affect choices
and the effects of changes (in these factors) on decision makers
Microeconomics tends to use (something) rather than (something) to explain
(something) - answer theory; empirical evidence; changes (in individual markets and
industries)
Definition of Macro-Economics - answer The study of economic behavior and decision
making in the whole economy (rather than individual segments of the economy)
Macroeconomics looks at - answer aggregate variables
Macroeconomics attempts to explain - answer what is likely to happen to the economy
as a whole if certain economic factors change
Macroeconomics places greater emphasis on using (something) - answer empirical
evidence
Microeconomics is concerned with decision making by - answer individuals,
households, and firms
Macroeconomics is concerned with decision making - answer for the economy as a
whole
Demand refers to - answer the willingness and ability of customers to pay a given price
to buy a product
Demand is also referred to as - answer effective demand
