1.3 - this change in the market would cause a RIGHTWARD SHIFT of the DEMAND CURVE

Boost in UK birth rate (demographic change)

1.1 - Definition of a 'trade off' in economics...

Having more of one variable means having less of another

1.2 - what are the macroeconomic/external economic factors (aka the 5 juggling balls!)??

IR, inflation, exchange rates, U/E and taxation

1.1 - Difference between 'revenues' and 'profits' is.....

Profits consider costs, subtracted from revenue

1.2 - What is the concept of 'creative destruction'??

new technologies/ideas taking over some old tech/ideas

1.3 - What is the law of demand?

Relationship between price charged and demand from consumers

1.2 - What are the factors of production??

Capital, enterprise, land and labour

1.1 - State the difference between 'wants' and 'needs'

Wants = luxuries. Needs = Necessities

1.1 - What is the concept of CSR all about?

Firms having an overall positive impact on society

1.2 - What is an entrepreneur??

Someone who takes a risk & brings together the CELL factors

1.1 - What is a stakeholder/economic agent?

Any group of people who have an INTEREST in a business

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Y12 Economics B - 1.1-1.3

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Y12 Edexcel Economics B - 1.1-1.3

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Questions 21

Answers

1
1.3 - 'When profit acts as a beacon and attracts supply to a market'
Price incentive
Disequilibrium
Price rationing
Profit signalling mechanism
2
1.3 - this change in the market would cause a RIGHTWARD SHIFT of the DEMAND CURVE
Boost in UK birth rate (demographic change)
Raise in income tax
Increase in business costs
Negative effect in fashion/trend/preferences
3
1.1 - Which of these are a non-profit objective?
Sales maximisation
Profit maximisation
Profit satisficing
Survival
4
1.1 - Definition of a 'trade off' in economics...
Having more of one variable means having less of another
Trading one thing for another
Scarcity leads to choices having to be made
The cost of missing out on the next best alternative
5
1.2 - What is the current rate for interest rates?
Trade deficit
0.5%
0.4%
5.1%
6
1.2 - Which of these is NOT a problem associated with high inflation?
Less upward pressure on wages
Rising business costs
Uncertainty
Reduced international competitiveness
7
1.2 - what are the macroeconomic/external economic factors (aka the 5 juggling balls!)??
IR, inflation, exchange rates, U/E and taxation
IR, inflation, balance of payments, ER and supply side
Inflation, IR, fiscal, monetary and supply side
Inflation, IR, U/E, fiscal and monetary
8
1.1 - Difference between 'revenues' and 'profits' is.....
Profits consider costs, subtracted from revenue
Revenues consider costs, subtracted from profit
Profit is the same as revenue
Revenue consider TVC, OP consider Total Costs!
9
1.2 - Which of these is an indirect tax (tax on expenditure)??
Income tax
VAT
National Insurance
Corporation tax
10
1.2 - What is the concept of 'creative destruction'??
new technologies/ideas taking over some old tech/ideas
old technologies/ideas taking over some new tech/ideas
Creatively destroying a business
Reverse innovation
11
1.3 - What is the law of demand?
Relationship between price charged and demand from business
Relationship between price charged and supply from business
Relationship between price charged and demand from consumers
Relationship between price charged and supply from consumers
12
1.2 - What are the factors of production??
Capital, enterprise, legal and land
Capital, enterprise, land and labour
Creativity, enterprise, labour and land
Capital intensive, enterprise, legal and lettings
13
1.3 - The following picture represents a classic example of this concept...
Mass marketing
Differntiated marketing
Micromarketing
Niche marketing
14
1.3 - when a firm divides up its market by different criteria in order to differentiate product
Market mapping
Market growth
Market segmentation
Market positioning
15
1.1 - State the difference between 'wants' and 'needs'
Wants = luxuries. Needs = Necessities
Needs = luxuries. Wants = Necessities
Wants = undesirables Needs = desirables
Wants = Trade off Needs = OC
16
1.1 - What is the concept of CSR all about?
Ethical decision making
Firms having an overall negative impact on society
Firms having an overall positive impact on society
Excuse for marketing campaign
17
1.2 - What is an entrepreneur??
A businessman
Someone with a lot of money
Someone with creativity
Someone who takes a risk & brings together the CELL factors
18
1.3 -'When a firm uses new information collected out in the field via questionnaires, etc'
Secondary research
Primary research
Qualitativeresearch
Quantitative research
19
1.1 - What are business objectives?
Long term targets/aims
Tactics
Strategy
Mission
20
1.1 - What is a stakeholder/economic agent?
Any group of people who have an SHARES in a business
Any group of people who OWN a business
Any group of people who have an INTEREST in a business
Any group of people who are EMPLOYED BY a business
21
1.3 - Name of the pricing strategy when the business starts off with a high price as unique
Price skimming
Competitive pricing
Pentration pricing
Destroyer pricing

Y12 Economics B - 1.1-1.3 Flashcards | StudBud