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IGCSE Economics Definitions Flashcards | StudBud
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IGCSE Economics Definitions
IGCSE Economics Definitions
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A revision activity for IGCSE Economics students to test their knowledge of key terms from all units
Flashcards
39 cards
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Practice quiz
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Questions
39
Answers
1
If a worker has high occupational mobility, this means that...
The worker gets paid high wages
The worker works undesirable hours
The worker can work in many countries
The worker is able to work between different occupations
2
Which statement describes the law of supply?
As the price of a good rises, the quantity demanded falls
As the price of a good falls, the quantity supplied falls
As the price of a good falls, the quantity supplied rises
As the price of a good rises, the quantity supplied falls
3
Profit =
Selling price multiplied by amount sold
Revenue minus total costs
Revenue minus fixed costs
Total costs minus revenue
4
Which of the following businesses is part of the secondary sector?
A gym
A firm extracting oil
A factory producing donuts
A hotel
5
Which of the following is NOT a key question about resource allocation?
How to produce?
For whom to produce for?
What to produce?
How many to produce?
6
Which of the following is NOT a function of a trade union?
Negotiating better Non-wage benefits
Increasing holiday entitlement
Improving working conditions
Helping workers apply for jobs
7
Good money should be...
Scarce, not easily damaged, divisible
In short supply, divisible, durable, scarce
widely available, accepted in limited places, portable
Accepted, portable, cheap to produce, scarce
8
Which of the following is a non-wage benefit?
Having very social co-workers
A job promotion
Maternity pay
Being employed as a part-time worker
9
Imagine PED = 7.5. This suggests a good is....
Highly price inelastic
Highly price elastic
Slightly price elastic
Unit elastic
10
Which of the following is another way of saying a 'market economy'?
Mixed economy
Free market economy
Planned economy
Private economy
11
If Coca Cola acquires Pepsi, this is an example of ...
Forward vertical integration
Backward vertical integration
Horizontal integration
Lateral integration
12
Which of the following factors does NOT affect the PED of a good/service?
The amount of time consumers have to make a decision to buy
The availability of compliment goods
Number of substitutes
The proportion of income spent on a good
13
Which of the following is NOT a factor affecting the quantity demanded of a good/service?
Changes in the productivity of technology
The amount a good is advertised
Changes in income of an individual
Changes in the size of a population
14
Which statement best describes the economic problem?
High supply
Limited wants
Unlimited resources
Scarcity
15
What best describes 'land'?
Any natural resource used in the production process
Outputs
Wood, trees and water
Anything man-made
16
What does PED measure?
The responsiveness of demand to changes in price
How price changes with demand
How firms respond to changes in price
The responsiveness of price to changes in demand
17
What are 'free goods'?
Goods that not use child labour
A lack of market failure
Resources that are not scarce
Resources that do not cost any money
18
How would an increase in the price of iPhones be illustrated using a diagram?
A shift in the supply curve to the right
A shift in the demand curve to the left
A shift in the demand curve to the right
A movement along the demand curve
19
A perfectly competitive market benefits from...
Limiting supply of a good
Generating abnormal profits
Being a price-maker
Having perfect knowledge of the market
20
Productivity measures ...
The amount produced from a given amount of input and time
The amount a firm sells in a year
The amount workers produce
The time it takes to produce a product
21
Define subsidy
A payment to producers to lower cost of production
Discounts to consumers
Income governments receive from taxation
Transfer payments
22
If a decision results in more social costs than social benefits, the decision is considered...
Not beneficial to society
Unprofitable
Uneconomic
Expensive
23
How can governments correct market failure?
Less regulation
Lower subsidies
Lower taxes
Government policy
24
How is labour productivity measured?
Time produced divided by output
Number of employees divided by total output
Total revenue divided by number of employees
Total output divided by number of employees
25
How does a public corporation differ from a public company?
Public corporations are government owned
Public corporations cannot earn revenue
Public companies are government owned
Public companies have unlimited liability
26
What distinguishes a public good from a merit good?
Public goods always benefit from economies of scale
Merit goods are provided by both public and private sector
Merit goods are usually free to consume
Public goods are highly scarce
27
How does a market economy differ from a mixed economy?
Most economies in the world are market economies
A planned economy focuses on necessities rather than wants
A mixed economy has a primary incentive to make profit
A market economy is dominated by the public sector
28
Which the following is not offered by commercial banks?
Financial advice
Bank loans
Supervision of other commercial banks
Credit and debit cards
29
Private benefits + external benefits = ?
Social costs
Total social benefit
Economies of scale
Negative externalities
30
Which of the following are non-price factors affecting the supply of a good/service?
Advertising, raw material prices, tax
Tax, natural disasters, profitability
Cost of production, income levels, advertising
Changes in population, raw material prices, weather
31
Money is considered as an acceptable means of purchasing means goods. This shows money is...
A medium of exchange
Measure of value
A store of value
Means of deferred payment
32
A perfectly elastic demand curve would look...
Horizontal
Vertical
33
'Work to rule' is a form of industrial action. What does this mean?
Workers refuse to work and protest outside the workplace
Workers comply to every rule and regulation excessively
Workers refuse to work more than their contracted hours
Workers intentionally work slow
34
When a firm breaks even they are...
Generating enough revenue to cover all their costs
Are making profit
Making a loss
Selling a high quantity of products
35
Disposable income is...
Income spent on unnecessary goods and services
Consumer expenditure
Income a person has left after tax
Income stolen from cyber fraud
36
Which Economic diagram is used to demonstrate the concept of opportunity cost?
Aggregate demand curve
Demand curve
Production possibility curve
Supply curve
37
Pay per hour worked is called...
Commission
Salary
Piece rate pay
Time Rate pay
38
What best describes 'demand'?
Amount consumers are willing and able to buy at diff prices
How responsive demand is to changes in price
How much consumers are willing to buy
What prices consumers charge for goods and services
39
Revenue an oil company earns rom the sale of oil and petroleum is an example of...
An external cost
A social cost
A positive externality
A private benefit
