Edexcel (A) Economics A-Level: Theme 1

What is the economic problem?

Scarcity is the shortage of resources in relation to quantity of human wants

Government failure is when government intervention leads to net welfare loss in society

What does a PPF graph represent when resources are fully and efficiently employed?

Define Ceteris Paribus

Regulations are meant to address

An indirect tax has which effect?

In a free market...

Which of the following could be a public good?

Price elasticity of demand is the responsiveness of demand to a change in price

Which is the best definition for opportunity cost

Define the incidence of tax

When an economic agent lacks the information to make an informed, rational decision, this is know as market failure

When the price is set too low so demand is greater than supply, demand is in...

Complementary goods have a negative XED

Price goods are rivalrous and excludable

When both the free market and the government allocate resources, this is known as a mixed economy

The demand for a perfectly price elastic good...

A public good is non-rivalrous and excludable

Which of the following is not a factor of production?

What is the equation for XED

Price elasticity of supply is the responsiveness of price to a change in supply

Consumers intervenes to provide information to correct market failure

Habitual behaviour is a cause of

The ceiling price of a good is the minimum price a firm can sell a good for

Define Ad Valorem Tax

Define a renewable resource

An inferior good has a YED of...

Define capital goods

Utility is defined as the satisfaction derived from cunsoming a good

A unitary price elastic good has a PED/PES value of...