A Level Economics Exam
With answers
Scarcity - answer-When there are not enough resources to satisfy all of our needs and
wants
Opportunity Cost - answer-The next best alternative foregone
Land - answer-All of the natural resources and below the land
Labour - answer-Productive physical and mental activity of workers
Capital - answer-Man made goods used to produce other goods and services
Enterprise - answer-Having ideas and taking risks in setting up or running a business
Economic goods - answer-A good which has an opportunity cost
Free goods - answer-A good which has no opportunity cost
Renewable resources - answer-Reproduce as part of a natural process within a
reasonable time frame
Non renewable resources - answer-Resources that do not replenish naturally within a
reasonable time frame
Free market - answer-An economic system where the allocation of resources is
determined by price mechanism
Mixed economy - answer-An economic system where the allocation of goods is
determined by a combination of the government and price mechanism
Investment - answer-Increasing the stock of capital goods
PPF - answer-A curve showing the maximum potential level of two goods an economy
can produce and combinations of those two goods an economy can produce with
current resources
Consumer - answer-Goods that are ready for immediate consumption
Actual economic growth - answer-When there is an increase in the output of goods and
services in an economy
With answers
Scarcity - answer-When there are not enough resources to satisfy all of our needs and
wants
Opportunity Cost - answer-The next best alternative foregone
Land - answer-All of the natural resources and below the land
Labour - answer-Productive physical and mental activity of workers
Capital - answer-Man made goods used to produce other goods and services
Enterprise - answer-Having ideas and taking risks in setting up or running a business
Economic goods - answer-A good which has an opportunity cost
Free goods - answer-A good which has no opportunity cost
Renewable resources - answer-Reproduce as part of a natural process within a
reasonable time frame
Non renewable resources - answer-Resources that do not replenish naturally within a
reasonable time frame
Free market - answer-An economic system where the allocation of resources is
determined by price mechanism
Mixed economy - answer-An economic system where the allocation of goods is
determined by a combination of the government and price mechanism
Investment - answer-Increasing the stock of capital goods
PPF - answer-A curve showing the maximum potential level of two goods an economy
can produce and combinations of those two goods an economy can produce with
current resources
Consumer - answer-Goods that are ready for immediate consumption
Actual economic growth - answer-When there is an increase in the output of goods and
services in an economy
