What is positive economics?

When a statement can be tested as facts

What's the division of labour?

When employees specialise in one area of production process

What is normative economics?

When there's opinion and judgement in a statement

Main problem in Economics?

Scarce resources but unlimited wants/needs

What's specialisation?

When someone focuses their skills and investment on 1 field

What does CSR stand for?

Corporate Social Responsibility

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Edexcel Economics B A Level Theme 1

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theme 1 revision for edexcel economics a level (B)

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Questions 18

Answers

1
Which of these is an ethical objective for a firm?
Return on investment
Increase in employee welfare
Survival
Customer satisfaction
2
What is positive economics?
When a statement can be tested as facts
When a politician is positive about the future
When there's speculation around performance of an industry
When the economy is in boom or recovery
3
What's a trade off?
A balance between two choices
Rivalry between two countries
Making a bad choice initially but then choosing a better one
Trading with another country
4
Does the state of technology effect supply or demand?
supply
demand
5
Which is a possible objective for a business?
Profit maximisation
Sales maximisation
All of the above
Satisficing
6
Which are non financial motives for an entrepreneur?
Independence
All of the above
Working from home
Profit
7
Would you increase or decrease interest rates to decrease inflation?
Decrease
Increase
8
What's the division of labour?
When the Government splits labour into sectors
When employees specialise in one area of production process
When unemployment is really high
Difference between number of skilled and unskilled workers
9
What is normative economics?
When there's equilibrium in most markets
When there's a lot of evidence to support an economic claim
When there's opinion and judgement in a statement
When the economy is stable
10
Which one of these doesn't determine demand?
Income level
Complementary goods
Advertising
Costs of production
11
What is the base rate set by the Bank of England?
0.5%
2%
0.75%
0.25%
12
What is the name of people involved in all economic activity?
Stakeholders
Taxpayers
Producers
Economic agents
13
Main problem in Economics?
Brexit
Inflation
Scarce resources but unlimited wants/needs
Trump
14
What's it called when you sacrifice alternative choices?
Loss of scarce resource
Opportunity cost
Trade off
Break Even Point
15
What's specialisation?
When someone reduces all costs to as low as possible
When 2 countries swap their products and compare quality
When someone focuses their skills and investment on 1 field
16
What does CSR stand for?
Corporate Social Responsibility
Corporate Statistical Report
Corporate Social Responsibility
17
What's it called when new innovations lead to economic growth and old products become obsolete?
The innovation process
Structural Change
Decline
Creative Destruction
18
What's the finance specifically needed for production costs called?
Working capital
Production revenue
Venture capital
Retained profit

Edexcel Economics B A Level Theme 1 Flashcards | StudBud