What is the Basic Economic Problem?

Sharing scarce resources between people's infinite wants

What is the textbook definition of DEMAND?

Amount of goods bought at given prices over a period of time

What is a Merit Good?

Goods that are under-provided by the private sector

What is Specialisation?

Producing a limited range of goods by a person/firm/country

What is the textbook definition of MARKET

When buyers & sellers communicate & exchange goods/services

What is Derived Demand?

Demand for something because there's demand for another good

What is a COMPLEMENTARY GOOD?

Goods that are purchased together as they are used together

What is an advalorem tax?

A tax as a percentage of the price of a good

What is an inferior good?

A good that if income rises, demand falls

What is discretionary expenditure?

Non-essential spending or spending that is not automatic

What is an inverse relationship?

When price goes down, demand rises, When price goes up, demand falls

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Section A: The Market System IGCSE ECO

15 termsStudBud Administration379 plays

Quiz to test key terms in Section A of the Edexcel IGCSE Economics spec.

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Questions 15

Answers

1
A perfectly inelastic supply curve has an elasticity supply of what?
-1
Infinity
0
1
2
What is the Basic Economic Problem?
Sharing scarce resources between people's scarce wants
Sharing scarce resources between people's infinite needs
Sharing infinite resources between people's infinite wants
Sharing scarce resources between people's infinite wants
3
What is the textbook definition of DEMAND?
The amount of a good that will be bought at given prices
Amount of goods bought at given prices over a period of time
Goods and services that are bought
The amount of a good that will be bought
4
What is a Merit Good?
Goods that are over-provided by the private sector
Goods that are under-provided by the public sector
Goods that are over-provided by the public sector
Goods that are under-provided by the private sector
5
What is Specialisation?
Producing unlimited range of goods by a person/firm/country
Breaking the production process down in to smaller parts
Producing a limited range of goods by a person/firm/country
Breaking admin tasks down into smaller parts
6
What is the textbook definition of MARKET
Where goods & services are bought and sold
When buyers & sellers communicate & exchange goods/services
Where buyers and sellers get together to trade
An outdoor store
7
What is Derived Demand?
Demand because there isn't demand for another good
Demand for something because there's demand for another good
Very low levels of demand
Very high levels of demand
8
What is a COMPLEMENTARY GOOD?
A good for which demand will rise if income rises
Goods that are purchased together as they are used together
Goods that go together
Something you get free
9
Equilibrium Price is also known as what?
Market Clearing Price
Eco Price
Market Price
Equal Price
10
What is an advalorem tax?
A lump sum tax on the amount sold
A tax on advalorems
A tax as a percentage of the price of a good
Taxes imposed by the government on spending
11
How is Total Revenue calculated?
Price x supply
Price x Quantity sold
Demand x Supply
Demand + Supply
12
What is an inferior good?
A good that if income rises, demand falls
A good that if income rises, demand rises
13
What is discretionary expenditure?
Essential spending that is automatic
Money that goes straight out of your bank account
Essential spending
Non-essential spending or spending that is not automatic
14
What is an inverse relationship?
When price goes down, demand rises
When price goes up, demand falls
When price goes down, demand goes down
When price goes up, demand goes up
15
Which of the below are factors that affect supply?
Indirect taxes
All of the above
Natural Factors
Cost of production

Section A: The Market System IGCSE ECO Flashcards | StudBud